Falling global scrap prices and increase in India’s domestic scrap prices have attracted Indian mills towards booking imported scrap cargoes.
According to sources, a West India (Gujarat) based steel maker has booked a bulk cargo containing 30,000 MT comprising a mix Shredded and HMS scrap. The cargo sold by SIMS one of the largest scrap supplier from USA at an average price of around USD 370/MT, CFR Nhava Sheva.
Last week few buyers in India were eyeing for correction in bulk offers. Offers for bulk cargoes were prevailing at USD 390/MT last week. As soon as offers showed further downfall, a new bulk cargo booked at USD 370/MT levels – shared a source
“Offers for Shredded scrap in bulk cargo were at USD 375/MT, CFR India. While for Mix grade and HMS scrap bulk cargo offers were at USD 367-370/MT, CFR India.” a source informed
Present offers for containerized Shredded scrap from USA are around USD 360-365/MT, CFR Nhava Sheva. Last week few trades were concluded for containerized Shredded at USD 370/MT, CFR level. Thus, the latest price assessment further moved down by USD 5-7/MT against last week’s assessment.
Price assessment for HMS 1&2 (80:20) in containers is at USD 350/MT, CFR Nhava Sheva from Europe and offers for HMS heard from West Africa are at USD 345/MT, CFR.
On the other hand, domestic scrap prices increased further on W-o-W basis which has resulted in buyers to prefer imported scrap over domestic as price gap between them has narrowed sharply. Currently, HMS (80:20) in Mumbai is assessed at INR 24,700/MT, up by INR 900/MT W-o-W and that in Chennai is around INR 25,000/MT, up by INR 1400/MT W-o-W (Basic prices, GST @ 18% extra).
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