Imported scrap offers to India remain stable at higher levels, even as buyers remain hesitant to import at current levels on the back of falling domestic steel prices.
Scrap offers from Europe remained stable at USD 280-285/MT for HMS 1&2 & USD 305-307/MT for Shredded, CFR Nhava Sheva India. Improved demand in Turkey and strong Euro have made suppliers stick to their offers.
Despite low buying interest in the market at current levels, there is much speculation on further price (offers) increase from European suppliers.
According to the participants, market may witness another price-rise owing to General Rate Increase (GRI) in freight from Europe to India. The freight may increase by USD 200 per container, leading to a rise of USD 8-10/MT in Scrap offers to India.
Offers from Middle East fall
On the other hand, suppliers from Middle East have started offering Scrap at a discounted price of USD 277-280/MT for HMS 1&2 (22-23 tonnes loading), USD 290-292/MT for HMS 1 (25 tonnes loading) & USD 312/MT for Blue Steel scrap, CFR India.
According to a Scrap supplier based in Dubai, “Prices for Sponge iron & Billet have reduced sharply last week in India. So to match the prices according to Indian market, we ought to correct our Scrap offers.”
Meanwhile, offers from other countries remain unchanged at USD 302-303/ MT for Shredded from US and USD 282-285/MT for HMS-1(25 tonne loading) from South Africa.
Falling domestic Steel Price resists Scrap buying
Indian Scrap buyers are hesitant to procure the material at higher import offers, owing to continuous fall in domestic demand & prices of Steel. Prices of domestic steel have witnessed a noticeable fall of around INR 500/MT in a week’s time.
Domestic Scrap & Billet in Mumbai fell W-o-W by around INR 500/MT to INR 20,600/MT & INR 28,000/MT, ex-yard. Ingot prices were at around INR 25,400/MT (-200) ex-Raipur & INR 27,600/MT (-600) ex-Mumbai. Whereas, Sponge (80 FeM) prices in major markets like Raipur, Rourkela & Mandi Gobingarh fell by INR 200-400/MT at INR 16,900/MT, INR 16,000/MT & INR 20,400/MT respectively.
Scrap prices as on 6 May’15
| Particular/Delivery | Size/Grade | Prices in USD/MT |
Change |
| CNF Mumbai, India | HMS(80:20),Europe | 280-285 | + 2 |
| HMS-1&2,Middle East | 277-280 | – 5 | |
| HMS-1,Middle East | 290-292 | – 3 | |
| HMS-1,S.Africa | 280-285 | 0 | |
| Shredded,Europe | 305-307 | + 4 | |
| Shredded,US | 302-303 | + 2 | |
| CNF Taiwan | HMS(80:20),US | 225-227 | – 5 |
| CNF Turkey | HMS(80:20),US | 274-276 | 0 |
| FOB Rotterdam, Europe | HMS(80:20),Europe | 238-242 | 0 |
Source: SteelMint Research
Trade Wise
1.Middle East based suppliers offering HMS 1&2 at USD 277-280/MT, CIF Nhava Sheva, India
2.European suppliers offering Shredded at USD 305/MT, CIF Nhava Sheva
3.Japanese traders offering Shredded busheling scrap at USD 300-305/MT, CIF Nhava Sheva
4.Middle East based supplier MSS FZC offering gas based DRI of 82 FeM at USD 235/MT, CIF India (in containers)
5.Indian Billet prices assessed at INR 28,000/MT, ex-Mumbai & INR 27,800/MT, ex- Chennai
6.Vizag Steel’s Bloom export tender received bids at USD 370/MT, FoB India.
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