Salem Steel Plant, a unit of Steel Authority of India Limited (SAIL) had floated a tender to purchase of 5,130 MT MS Scrap (HMS 1). The tender was due on 19 Mar’18 which was later extended till 17th Apr’18 owing to limited participation.
In the latest update received on the same, the steelmaker has again extended the tender till 07 May’18. As per sources report to SteelMint, in order to get better response as per the required technical specification, they have extended the tender.
The bidders were asked to quote the price on per MT of scrap on CFR Chennai Port basis with packaging in a 20ft end opening containers. The price evaluation will be done on the basis of Landed Cost Net of Set off (LCNS), per MT of scrap, based on the fixed price quoted by the bidder per MT of scrap. The bid evaluation is to be done in two-stage mechanism – techno-commercial and Reverse Auction.
Indian imported scrap market scenario –
Indian imported scrap market has witnessed increased no of trades in containers in the last couple of weeks. However, this week buyers remained cautiously waiting amid currency depreciation to get clear price direction in the global market although offers remained almost stable in India.
Few trades for Shredded concluded at USD 387-390/MT, CFR in containers from UK while offers for the same from USA gauged stable in the range of USD 390-395/MT, CFR Nhava Sheva on W-o-W basis. Price assessment for South African HMS 1&2 stood stable at USD 375-378/MT and Dubai origin HMS 1 at USD 377-380/MT, CFR Nhava Sheva. Minor trades for West African and European HMS concluded in the range of USD 355-365/MT, CFR depending on the quality of scrap.
Currently, HMS (80:20) prices in Mumbai and Chennai are assessed in the range of INR 26,000-26,500/MT (USD 390-398) (Basic prices, GST @ 18% extra).
However, the slowdown in ship cutting activities and increasing domestic scrap prices may support importers to book imported scrap in coming days over strong finish steel demand in India.
Sail might have extended the tender on the possibility of getting a good response from the suppliers this time amid improving sentiments.
Leave a Reply