In recent conversations with market participants, SteelMint learned that Indian imported scrap market has witnessed limited quantity trades in containers in the mid of this week. However, with downward corrections in the international markets, few importers turn silent again for more clarity. Cheaper availability of domestic scrap in the most of the regions of the country keep steelmakers buying local scrap over imported. Imported scrap prices remained almost stable on W-o-W basis.
Price assessment of UK and Europe origin containerized Shredded scrap now stands at USD 357-360/MT, CFR Mundra/Nhava Sheva. Few deals for Shredded confirmed at around USD 360-362/MT,CFR from a leading supplier. On W-o-W basis, HMS 1&2 offers have slightly inch up following improved demand. Offers from UAE for HMS 1&2 (80:20) heard at USD 335-340/MT and for HMS 1 at around USD 340-345/MT, CFR. South African HMS 1&2 is being offered at around USD 350/MT, CFR.
Minor trades for West African HMS heard in the range of USD 315-320/MT, CFR Nhava Sheva depending on quality of scrap in containers and loading ports.
Most of the participants are likely to wait for few days to have more clarity about global market and may resume bookings actively in the second half of August with improving domestic market fundamentals.
Indian domestic scrap prices show mix trends this week – After witnessing slight upward movement last week, Indian scrap prices have corrected down in major regions again. However, prices move up in Central region amid tight supply. Currently, HMS (80:20) basic prices assessed at INR 24,900-25,100/MT (USD 361-364), down INR 200 W-o-W in Mumbai, while prices assessed at INR 27,200/MT, up 1200/MT on W-o-W ex-Raipur basis.
Chennai based importers turn silent amid cheap local scrap – Chennai based scrap importers have turned silent for imported scrap over cheaper availability of local scrap. Prices for HMS (80:20) assessed at INR 22,900-23,100/MT, up INR 400 on W-o-W basis in Chennai, GST @ 18% extra. Notably, Chennai based scrap prices are lowest throughout the country at the moment. According to reports, due to some pollution issues and electricity cutouts few plants in Southern region have observed closure for few days. Which is reflecting in increasing conversion margins for billet manufacturers in Chennai.
Currently billet prices assessed at INR 35,500-36,000/MT, ex Chennai reflecting in very high conversion margin of scrap to billet in Chennai as compared with other regions in India.
Ship breaking prices remain weak – Alang based ship cutters remain hesitant to place offers again this week, thus it is hardly surprising to see no new vessel being sold for ship breaking in India. The country is facing tentative time in ship cutting market as buyers still stunned by excess USD 50/LDT declines in local steel prices in last several weeks. However, Steel plate’s prices turned down by INR 200-300/MT W-o-W in Eastern coastal area. Ship cutting prices remain stable on W-o-W basis and assessed at USD 405/LDT for general dry bulk cargo; at USD 430/LDT for containers and at USD 420/LDT for tankers on CNF India basis respectively.
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