In recent conversations with industry participants SteelMint learned that Tata Steel Ltd concluded 15,000 MT imported melting scrap tender last week for which it had invited bids around two weeks earlier. SteelMint tried confirming the news with Tata Steel officials, but the emails remained unanswered. Another fresh tender for imported scrap is expected to be floated soon.
According to sources, out of the total issued quantity through e-auction, 9,000 MT of HMS scrap was booked at around USD 330-335/MT, CFR Vizag and 6,000 MT of Shredded scrap at around USD 340-350/MT, CFR Vizag (India east coast). Around USD 3-4 can be considered as an additional cost of interest on 90 days LC to suppliers cost.
According to the RFQ, scrap packaging to be done in sealed 20ft containers from the origin as Australia/New Zealand/UK/ Europe/US/North America/South Africa/Malaysia/Singapore/Middle East.
About Tata Steel BSL – In Nov’2018, Tata Steel acquired the Tata Steel BSL Limited (formerly Bhushan Steel Limited) through its wholly-owned subsidiary. As the third largest integrated steel player in India, Tata Steel BSL is a source for a vivid variety of products with a steel production capacity of 5.6 MnTPA located in Odisha.
Indian imported scrap bookings subdued on election mood – Indian imported scrap activities remain subdued amid ongoing elections. Most of the buyers continued buying as per their urgent needs. Importers remained away from booking in large volumes as the cash flow has turned limited.
SteelMint’s assessment of Shredded scrap stands at around USD 335/MT, CFR Nhava Sheva. HMS 1 from Dubai at around USD 330-335/MT, CFR depending on quality. Domestic scrap and steel prices remain volatile by INR 400-500/MT on a weekly basis. It is interesting to see Indian scrap import activities during the upcoming Ramadan festival (5th May-4th June) when trades in other major importing countries like Turkey, Pakistan, Bangladesh and Indonesia usually remain slow.
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