India: Imported scrap trade slightly up on lesser price correction chances

Indian imported scrap buyers have gradually increased their inquiries for imported scrap and resumed bookings fresh slots for Sept’21 shipments as they see lesser chances of a price correction. Market players are actively procuring scrap as limited stock is available with their mills due to absence of inquiries in the past couple of months.

Also, imported scrap offers which had softened on global scrap prices’ decline earlier this week, have now shown signs of recovery. Hike in offers from the UK and US has resulted in rise in imported scrap offers in the second half of the week. Market insiders expect the trade for imported scrap to increase ahead of the favourable construction season.

Recent deals and offers

• Around 1,000 t of shredded scrap of non US-origin have been booked by a major steel mill at $525/t CFR NhavaSheva equivalent levels.
•  Fresh offers for UK/EU-origin shredded are being offered at $530-535/t CFR levels, up by $5/t w-o-w.
• Another western India-based major steel producer has booked 6,000 t of UAE-origin HMS 1 at $475/t CFR levels and, from West Africa, around 4,000 t of HMS 1&2 (80:20) at $450/t CFR.
• Few deals of Brazil-origin HMS (80:20) were heard at $480/t CFR NhavaSheva earlier in the week.

Indian melting scrap prices remain volatile: Melting scrap prices slipped on account of a slight correction in semi-finished steel prices, due to inadequate supply.
SteelMint’s assessment for HMS is at INR 35,100/t DAP Mumbai, a dip of INR 600/t w-o-w. Similarly, prices for Jalna are at INR 34,800/t DAP, down by INR 300/t w-o-w.

However,P-DRI, FeM 80%, sponge iron prices increased by INR 800/t to INR 31,800/t exw-Raipur, w-o-w, which has nearly touched a three-month high as the same range was last seen during mid-May’21, due to supply shortage. Seasonal supply concerns and strong demand continue to support sponge iron prices in central India, SteelMint notes.

Rebar prices remain supported: Induction furnace (IF) grade re-bar prices remained supported across markets owing to the consistent rise in semi-finished steel prices. Moderate transactions were observed in re-bar that varied across markets, while manufacturers in the western and southern regions chose to keep offers stable with slight adjustments. As per SteelMint’s assessment, induction furnace (IF)-grade rebar prices in Mumbai stand at INR 49,600/t exw, unchanged w-o-w.