In recent conversations with market participants, SteelMint learned that Indian market has observed limited trades in imported scrap market. However, further currency depreciation this week led to a situation of panic in the market. Indian Rupees hit record low above 70 against USD. Thus, scrap imports have turned costlier and less viable at the moment in India. Cheaper availability of domestic scrap in the most of the regions of the country kept steelmakers preferring local scrap over imported.
Price assessment of UK and Europe origin containerized Shredded scrap stands at USD 345-352/MT, CFR Nhava Sheva. On W-o-W basis, Shredded scrap offers have moved down by USD 10/MT following global trend and slowdown in purchases from Pakistan and Bangladesh ahead EID holidays. However, Offers from UAE for HMS 1&2 (80:20) heard stable at USD 335-340/MT and for HMS 1 at around USD 342-345/MT, CFR. South African HMS 1&2 is being offered at around USD 345-350/MT, CFR.
Minor trades for West African HMS heard in the range of USD 315-325/MT, CFR Nhava Sheva depending on quality of scrap in containers and various loading ports.
“Global scrap markets are observing various dynamics leading them to show mixed sentiments at the moment. Trade wars among countries like USA, China and Turkey, Currency fluctuations in India and Pakistan while upcoming EID holidays in Bangladesh and Pakistan kept participants to wait for more clarity on price levels and dragged Shredded prices under pressure.” Shared a participant.
Indian domestic scrap prices uptick this week – After witnessing mix trends last week, Indian scrap prices have corrected upward in almost all major regions. However, prices move up by INR 500-700/MT at eastern coastal region amid tighter supply. Currently, HMS (80:20) basic prices assessed at INR 25,000-25,200/MT (USD 356-359), down INR 100 W-o-W in Mumbai, while prices assessed at INR 27,500/MT, up 300/MT on W-o-W ex-Raipur basis.
Chennai based scrap importers remained out of market for imported scrap over cheaper availability of local scrap. Prices for HMS (80:20) assessed at INR 23,500-23,600/MT, up INR 500 on W-o-W basis in Chennai, GST @ 18% extra. Notably, Chennai based scrap prices are lowest throughout the country.
Ship breaking prices show signs of improvement – Although slight improvement heard in steel plate prices this week, buying interest stood marginal in ship cutting market in India. Indian buyers has shifted their focus towards green and offshore units as Bangladesh is leading the ship cutting industry and Pakistan is likely to receive cutting permission this week. However, steel plate’s prices have turned upward by INR 500-600/MT W-o-W after two weeks of stability in the Alang market. Ship cutting prices remain stable on W-o-W basis and assessed at USD 405/LDT for general dry bulk cargo; at USD 430/LDT for containers and at USD 420/LDT for tankers on CNF India basis respectively.
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