Imported scrap trades in India have slowed down this week amid continuous rally in offers on supply concerns. The disparity between offers and bids has put buyers on wait and watch mood, according to sources. SteelMint’s assessment for shredded scrap in containers of UK/EU origin stands at $327/t CFR Nhava Sheva, up by $5 w-o-w. Imported scrap offers in India are hovering close to 16-months high.
Offers have rallied due to lower scrap generation on pandemic and ahead of winter holidays. Also, hike in freight rates on shortage of containers due to mismatch in imports & exports is another reason which has lifted offers.
We are holding our imported scrap bookings, for now, considering a sharp hike in offers, shared a steelmaker. Some market insiders consider that no active buying for imported scrap was seen at increased offers. Other substitutes like domestic scrap and sponge iron have gained preference this week, cited imported scrap traders.
Confirmed trades-
- A decent quantity of UK origin NTP and shredded has been booked at $335/t CFR Chennai
- Another deal concluded for UAE origin HMS 1 in containers was heard around $315/t CFR Nhava Sheva basis
Domestic market overview: Domestic scrap prices in western India have increased significantly on a weekly basis, following a hike in other substitute product (sponge iron) prices along with moderate trade activities in semi-finished and finished steel. SteelMint’s domestic melting scrap HMS (80:20) prices stood at INR 25,300/t in Jalna (up by INR 700 w-o-w) and INR 24,500/t in DAP Chennai (up by INR 1,000 w-o-w).
Sponge iron prices at two-years high: Sponge iron prices in Chhattisgarh (central India) are hovering close to two-years high. A sharp hike has been seen in Raipur due to the prevailing supply shortage & hike in pellet offers. SteelMint’s assessment for P-DRI & C-DRI stands at INR 23,800/t & INR 22,900/t, exw Raipur, respectively.
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