After remaining inactive since past few months, sentiments in India’s imported scrap looks turning optimistic and buyers are expected to return to the market shortly over less stocks. Imported scrap offers to India remain firm this week.
As per recent conversations with market participants SteelMint learned that, this week imported scrap offers in India have remained firm amid strong market sentiments and sharp lowering stocks. Buying interest was quite positive and sentiments were stable than earlier few weeks in India. Most of the participants now expect buyers to resume bookings in near terms.
Offers for Shredded scrap in containers assessed almost stable at USD 332-335/MT, CFR Nhava Sheva for both UK and Europe origins. Shredded from USA offered to few Indian importers at USD 330/MT, CFR Nhava Sheva. These offers are firm on W-o-W basis as offers for Shredded were at USD 335/MT, CFR Nhava Sheva for UK origin scrap last week.
Few offers for P&S scrap heard around USD 340/MT while offers for Turnings scrap were around USD 285/MT, CFR India. Offers for Australia origin HMS 1&2 (80:20) assessed at USD 315/MT, CFR Nhava Sheva this week.
Price assessment for HMS 1&2 (80:20) in containers for Dubai origin is now at the level of USD 305-310/MT, CFR Nhava Sheva and HMS 1 from Dubai at USD 310/MT, CFR India.
“Importers in Indian market are looking optimistic now, local markets are expected to remain positive for next few months. Buyers should start restocking anytime now as they are running on low stocks.” – A trader from eastern India shared with SteelMint.
Though domestic scrap prices have elevated up recently by INR 300-400/MT on W-o-W basis the gap between domestic and landed cost for imported scrap still persists. Currently, HMS (80:20) in Mumbai is assessed at INR 21,150/MT and that in Chennai is around INR 20,700/MT (Basic prices, GST @ 18% extra)
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