In recent conversations with market participants, SteelMint learned that Indian scrap importers are now expecting an increase in scrap import activities within next 7-10 days. Towards closing of the last week scrap prices moved down suddenly amid falling global scrap prices and remained almost stable in this week. Despite which, on the effect of currency depreciation and concerns over arriving monsoons not much trades are being concluded in the market.
Most of the participants remain in the ‘wait and watch’ mode to observe the clear price direction in the global market. However, US suppliers remain hesitant to offer materials at corrected levels.
Price assessment of UK/USA origin containerized Shredded stood at USD 380-385/MT, CFR Nhava Sheva. South African HMS 1&2 assessed at around USD 368-370/MT and Dubai HMS 1 at USD 370-375/MT, CFR Nhava Sheva. Minor trades for West African and European HMS concluded in the range of USD 345-355/MT, CFR depending on the quality of scrap in containers. These prices have moved down by USD 5-7/MT on W-o-W basis.
Turkey imported scrap prices rebound in recent deals – Imported scrap prices have recovered in the recent trades concluded in Turkey after witnessing a decline in earlier trades reported. According to SteelMint’s assessment, recent deals concluded for further June deliveries at corrected prices pushed the price assessment for USA origin HMS 1&2 (80:20) scrap up at around USD 338-340/MT, CFR Turkey up USD 4-5/MT against last report yesterday. According to participants, Turkey-based importers are likely to book around 30-35 cargoes in the upcoming one month’s period amid less inventories and supportive weather conditions.
Global scrap prices outlook steady for June – Optimism on improving buying interest in the global market likely to keep scrap prices range bounded without sharp deviation on either side. However, demand for premium grade scrap likely to surge sharply resulting in the price rise as compared to other medium and low-grade scrap.
Indian domestic scrap price scenario – Domestic scrap prices in India observed stability in the western region, Downtrend in the Southern regions while uptrend in Northern regions on the weekly comparison. Currently, HMS (80:20) prices in Mumbai assessed at INR 27,400-27,600/MT (Stable W-o-W), in Chennai INR 26,400-26,600/MT (-INR 200 W-o-W) these are basic prices, GST @ 18% extra.
Ship breaking market at Alang region witnessed firmer sentiments amid few sales concluded last week. Ship cutting prices have moved up by USD 10/LDT on W-o-W basis and assessed at USD 430/LDT for general dry bulk cargo; at USD 450/LDT for containers and at USD 440/LDT for tankers on CNF India basis respectively. Two LPG type vessel sold each of 5,798 LDT and 5,787 LDT at a reported price of USD 467.5/LDT and USD 468/LDT last week, CNF India.
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