As per recent conversations with market participants SteelMint learned that, Indian scrap market has observed one more booking of bulk scrap vessel at further lifted prices. A West India (Gujarat) based major scrap importer has booked another fresh bulk Shredded scrap vessel for March shipment towards the end of the last week.
According to sources, in the mentioned deal, a bulk vessel of 32,000 MT was booked containing mix grades of scrap comprising 10,000 MT HMS 1&2 (80:20) at USD 378/MT, 15,000 MT Shredded at USD 383/MT and P&S at USD 388/MT, CFR Kandla respectively.
In another deal heard around 5,000-8,000 MT Shredded scrap has booked by two-three Indian scrap importers at around USD 383/MT, CFR Nhava Sheva. However, the deal could not be confirmed at the time of publication of this article.
Earlier to this, two bulk vessels containing mix scrap had booked at around USD 370-375/MT, CFR last week.
In the last one month’s period, Indian scrap importers have booked considerable volumes of scrap in containers and few steel mills have also booked around 4-5 bulk vessels for March shipments. Lowered global offers after peak achieved in last few weeks, strong domestic steel demand and high local scrap prices have influenced steelmakers to book imported scrap significantly.
Offers for containerized Shredded scrap from USA assessed in the range of USD 375-380/MT, CFR Nhava Sheva. While offers for HMS 1&2 (80:20) in containers assessed at USD 365/MT, CFR Nhava Sheva from Dubai and from USA heard at USD 350-355/MT, CFR.
On the other hand, domestic scrap prices improved further by INR 400-500/MT on W-o-W basis amid tightened supply which has supported buyers to prefer imported scrap over domestic. Currently, HMS (80:20) prices in Mumbai and Chennai are assessed in the range of INR 25,000-25,500/MT (USD 385-395) (Basic prices, GST @ 18% extra).
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