India has witnessed limited trades for imported scrap as most of the buyers remained away from the market amid liquidity crunch and upcoming elections. Marginal price correction in global prices has resulted in softening of USD 5-10/MT in offers from suppliers against last week, however, participants anticipate that prices may recover once Turkey returns into the market towards mid-April for restocking ahead of Ramadan holidays.
SteelMint’s assessment for containerized Shredded from Europe, UK and US stand in the range USD 332-335/MT, CFR Nhava Sheva, down against USD 335-340/MT last week. Suppliers expectation remain above USD 335/MT, CFR as other subcontinental markets like Bangladesh continue to pay a premium over Indian buyers.
Few trades reported for containerized Shredded at USD 333-335/MT, CFR and P&S scrap at USD 345-347/MT, CFR Nhava Sheva.
Offers from UAE heard almost stable despite a correction in global markets on decent demand. Trades for HMS 1 from Dubai have been reported in the range of USD 327-332/MT, CFR Nhava Sheva, stable against last report depending on quality. Many steelmakers are presently preferring substitutes like domestic scrap, sponge and DRI over imported scrap on easier availability.
South African HMS is assessed at USD 330-332/MT, CFR Nhava Sheva. West African HMS 1&2 traded in 20-21 MT containers at around USD 305-308/MT, CFR Mundra and around USD 312-313/MT, CFR Chennai.
HMS 1 from the UK is being reported at USD 320-322/MT, CFR and offers for Turning scrap are being reported at USD 300-305/MT, CFR Nhava Sheva.
Domestic scrap prices have observed rise towards the weekend. Price assessment of local HMS 1&2 (80:20) scrap stands at INR 25,200-25,400/MT (USD 356-359), ex- Mumbai, up by INR 400-500/MT against the last week report. USD/INR exchange rate remained range bound this week between low 68.4 to high 69.2 on weekly premises.
Indian scrap imports fall marginally in Jan’19 – As per customs data released recently, Indian ferrous scrap imports fell by 5% M-o-M in Jan’19. India imported 477,338 MT ferrous scrap against 504,115 MT in Dec’18. On the other hand, scrap imports increased significantly by 41% Y-o-Y as against 339,020 MT in Jan’18.
During the first ten months of FY19, India imported 4,716,002 MT ferrous scrap, up 23% Y-o-Y against 3,826,457 MT recorded during the same period last year.
Scrap imports from UAE hit a record high in Jan’19 – UAE remained the largest scrap supplier to India occupying highest 23% share in total imports. UAE supplied 111,773 MT ferrous scrap, up 11% M-o-M against 101,152 MT in Dec’18. The demand of UAE based scrap especially HMS 1 remained very high amid a slowdown in supply from US and Europe and shorter delivery period (around 7-8 days).
Other prominent exporters were UK (65,506 MT, down 21%), South Africa (38,268 MT, up 2%), Singapore (30,096 MT, down 5%) and United States (27,827 MT, stable) on monthly basis occupying 14%, 8%, 6% and 6% share respectively.
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