In recent conversations with market participants, SteelMint learned that Indian scrap importers have observed positive sentiments in last two weeks’ time. The demand for imported scrap has continued to remain strong after EID holidays making India as the leading market in Indian subcontinental. This has pushed imported scrap prices up amid supply tightness and increase in global scrap prices. Although, few buyers remain seeking for more clarity, it is likely that prices may move up further in upcoming weeks as Pakistan and Bangladesh have remained slow in purchases.
The price assessment from UK and Europe based containerized Shredded stands at USD 350-355/MT, CFR Nhava Sheva. Which has increased by USD 10/MT W-o-W as against the report of USD 340-345/MT last week. Amid supply tightness very few offers for USA origin containerized Shredded are even being quoted at USD 360/MT, CFR.
According to sources, few trades for HMS 1 from Dubai and South Africa sold at USD 345-350/MT, CFR. Offers for HMS 1&2 (80:20) heard at USD 335-340/MT from UAE and UK.
Turnings scrap assessment for Europe and other origins stands at USD 320-325/MT, CFR Nhava Sheva. While limited offers heard for West African HMS this week.
“Participants were expecting for sharp drop in domestic scrap prices in major suppliers like US, UK and Europe however, that does not seem to happen now. On the other hand, Turkey scrap prices are recovering thus global scrap prices might have been stabilized now and likely to move up with increasing purchases and tight availability in coming days.” shared a source.
Indian domestic semis market has showed upturn this week while Alang based ship cutting prices and local scrap prices have observed improved sentiments with rising demand. However, Indian Rupees hit all-time record low above 71 against USD today which may impact imports again.
Indian domestic scrap prices move up amid improved semis market – Indian scrap prices show mix trends in almost all major regions. Local HMS 1&2 (80:20) basic prices move up sharply in central region by INR 2000/MT W-o-W on high sponge export prices and stand at INR 29,000/MT, ex-Raipur. At eastern coastal region prices move up by INR 700-900/MT W-o-W. Currently, HMS 1&2 (80:20) basic prices assessed at INR 25,800-26,000/MT (USD 364-367) up INR 300 W-o-W, ex- Mumbai.
Chennai based scrap importers may turn active for imported scrap again as local scrap prices moved up sharply in Chennai and have come in line with other markets now.
Ship breaking prices improve further – Recovery of around USD 30/LDT in ship plate prices in last two weeks’ has given ship cutting market healthy prognosis as industry heads to Q4 CY18. Upcoming end of monsoon season and firming steel plate prices made many of the recyclers active again in the market. Average steel plate’s prices have turned upward by INR 400-500/MT W-o-W in the Alang market. Ship cutting prices increase marginally on W-o-W basis and assessed at USD 415/LDT for general dry bulk cargo; at USD 440/LDT for containers and at USD 430/LDT for tankers on CNF India basis respectively.
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