India: Imported scrap trades lukewarm amidst increasing lockdown restrictions

India’s imported scrap market has witnessed limited trades on increased lockdown restrictions being announced amid a sharp increase in COVID cases. On the other hand, limited container and material availability have continued to push offers up, SteelMint understands.

“I think the market will move up again for short term, while people are waiting to see if any correction comes since supply shortage in the overseas market looks to be strong” shared a participant from a leading scrap trading firm.

INR vs USD exchange rate has also remained volatile so far this month. Currently, 1 USD is trading at 74.7 against 73.2 assessed towards the beginning of the week.

Recent trades & offers:

• Fresh offers for shredded is being quoted at $465-470/t CFR Nhava Sheva basis, moving up by $10-12/t w-o-w, but hardly any trades were heard. However, sellers were not much interested to conclude deals in India as Pakistan based mills were actively concluding deals at $460-465/t due to restocking ahead of Ramadan
• HMS offers from UK/EU origin HMS 1&2 (80:20) is now cited at $430-440/t CFR levels
• UAE origin HMS1 is now offered at $440-445/t CFR Nhava Sheva basis. Towards the beginning of the week, trades were heard around $420/t CFR basis
• Europe origin HMS (80:20) was traded at $435/t, CFR Chennai

Domestic melting scrap prices fluctuate: Domestic scrap prices observed fluctuations throughout the week. Towards the closing of the week , prices fell on minor corrections in finished steel prices. Whereas, in the Western region prices remained supportive on usual procurement SteelMint’s assessment for HMS in Western India is at INR 32,100/t DAP Mumbai, up by INR 500/t w-o-w, while it is INR 31,700/t DAP level for Jalna, down by INR 100/t w-o-w.

Induction grade rebar prices in the secondary market have seen a slight decline this week in most of the major supplying regions in India, SteelMint assessment shows. Declining semi-finished steel prices and thin trades in rebar indicate further price corrections in the near term. SteelMint’s assessment for Rebar (IF grade) in Western India stands at INR 47,700/t exw Mumbai, down by INR 100/t w-o-w.

Outlook: Buyers are waiting for clear direction amid increasing COVID cases and lockdown restrictions.