After remaining quiet since past few weeks, Indian steel mills have turned active in booking imported scrap vessels. According to the recent conversation with various market participants SteelMint learned that, the recently some HMS scrap cargoes have been booked from Dubai.
A market participant reported that yesterday a cargo HMS 1&2 (80:20) of Dubai origin has been booked by some Indian buyers at USD 290/MT, CFR Nhava Sheva.
One more vessel is heard to be booked for same material & grade and from same origin at USD 285 /MT, CFR India. The vessel has been booked few days ago and is likely to arrive at Indian port next week. Most of the bulk bookings by the Indian buyers are conventionally done with 25 tonnes loading over benefits over transportation and lesser risks involved.
Less availability of domestic scrap in India has compelled Indian steel mills to drift towards imported scrap. Another reason behind rising interest towards imported scrap is costlier coking coal as it becomes cost effective to use scrap as raw material than others when prices for coking coal are high.
Imported scrap offers to India increase amid hike in global scrap prices – Presently SteelMint’s assessment of HMS 1&2 (80:20) from UK is at USD 290/MT, CFR. Moreover, price assessment of HMS (1&2) of Australian origin is around USD 295/MT, CFR and that of US origin is around USD 295-300/MT, CFR Nhava Sheva.
Price assessment for Shredded scrap is at USD 320/MT, CFR Nhava Sheva.
Paradoxically, some buyers also feared about the continuously growing global scrap prices, which may result in slowing down of import bookings by Indian importers.
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