Indian scrap importers prefer to stay mute owing to falling steel prices in domestic market. But, scrap suppliers see limited scope of correction.
Indian scrap import continues to remain dull this week. Offers for HMS scrap were heard to be in the range of USD 235-245/MT, CFR Nhava Sheva and Shredded (ISRI 211) at USD 260/MT levels.
According to an industry participant, “Offers will not make much difference as there is no buying interest in market. Hence, offers are just on the virtual platforms, as no real buying is taking place in the market.”
“Currently the market participants are more worried about dull demand and constant fall in offers, and issue related to stringent PSIC norms for scrap imports has become secondary,“ said another participant.
Offers for HMS 80:20 from Europe are at around USD 235/MT and shredded at USD 260/MT, CFR Nhava Sheva. Some exporters were also heard offering shredded at USD 255/MT, CFR India.
Offers for HMS, 25 mt loading from Middle-East are at USD 245/MT whereas 24 mt loading from West Africa are at USD 230-235/MT.
Japanese bushelling scrap (ISRI 207) is being offered at USD 280/MT CIF Nava Sheva.
One of the global exporter stated “Buying is very poor and steel mills are anticipating further correction in prices. But we feel that prices have bottomed out, there is hardly any scope of correction from here. Shredded offers remain at USD 260/MT CIF India.”
Global Buyers’ Market
Scrap offers at Turkey witnessed a slight improvement in offers of USD 2-5/MT in a week, before going for Ramadan vacation. Whereas, scrap market at Bangladesh & Pakistan remained mute owing to the long holiday mood (Ramadan festival) with no bulk buying heard in market.
Offers for HMS 80:20, there at Turkey are at USD 220-225/MT, CFR and at Bangldesh USD 250/MT, CFR levels.
Outlook
Looking at the marginal improvement in Spot iron ore price at China (owing to new strict pollution standards set by Chinese government) along with returning of Turkey and other nations to market after Ramadan holiday, there seems a hope for price stability in near future.
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