SteelMint learned from industry participants that imported scrap trades to India have remained considerably low throughout the week, on very slow finished steel sales amid production cuts observed by mills, while steelmakers are leaning towards domestic alternatives on lowered prices. As buyers are not finding viability in imported scrap, the buying interest remains quite lower, pulling down the offers on a weekly basis.
SteelMint’s assessment for containerized Shredded from UK, Europe and USA stands at USD 315-320/MT, CFR Nhava Sheva, down USD 3-5/MT against last week’s report, although no major trade deal has been reported in the market.
“Indian scrap importers seem to have turned silent amid non-viability. Few steelmakers have already lowered their production to avoid losses in the finished steel sales while many induction furnaces reported to have increased usage proportion of domestic alternatives like sponge iron amid price competitiveness” shared a source.
Offers for HMS 1 from few suppliers of Dubai and South Africa origin were reported to be rangebound at around USD 305-315/MT CFR Nhava Sheva. Offers for UK origin HMS of lower grade remained in a similar range as last week at around USD 280-285/MT CFR. Minor deals for HMS 1&2 from West Africa were reported at around USD 285-290/MT, CFR.
Indian domestic scrap prices inch up in last couple of days – Domestic scrap prices declined by around INR 700-1000/MT in the first half of the week, however, found slight support in the later half of the week amid marginal improvement in semi-finished prices. The current assessment of local HMS 1&2 (80:20) stands at INR 21,200-21,500/MT (USD 309-313), CFR Mumbai.
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