India’s imported scrap market remains quiet, market awaits Turkey’s and Chinese comeback

India’s imported scrap market has slowed down this week. Global scrap market insiders kept themselves away from the market on this weekend’s new-year holidays. Buyers are awaiting fresh offers to be quoted by global suppliers which are likely to be out by mid-next week, SteelMint learnt from its sources.

One confirmed trade was reported this week for 2,500 t of MS Shredded at $465/t CFR Vizag from Australia and New Zealand. SteelMint’s assessment for Shredded scrap in containers of UK/EU origin stands at $478/t CFR Nhava Sheva, moving up by $18 w-o-w.

“In India there is no buying at the moment as there is sufficient inventory with the steel mills. I observe that there is no desperate buying situation”, highlighted a Western India based trader.

Global scrap market is also eagerly waiting for China’s scrap imports to understand the clear price direction. Turkey’s scrap market is also quiet this week and offers to Turkey may increase as USA’s domestic market is strong and winter shipment is slow there.

Recent offers-

• Last offers for UK/EU origin Shredded were reported at $480/t CFR basis. While fresh offers are yet to quoted, which might stand at a minimum of $500/t CFR level, as expected by traders.
• Offers for HMS-1 from Dubai are heard at $420-425/t CFR level.
• West African origin HMS 1&2 (80:20) and cast iron have quoted at $400/t and $445/t CFR Goa level.

Domestic melting scrap prices rise w-o-w– Melting scrap prices observed fluctuations over a week in most of the scrap markets, trade sources reported to SteelMint. There was adequate availability reported in the Jalna market, however Northern and Southern regions observed tight availability. SteelMint’s assessment for HMS in Western India stands at INR 29,900/t DAP Jalna, up by INR 1,200 w-o-w. The assessment for Chennai stands at INR 31,900/t DAP Chennai level. Supply shortages have led to an increase of INR 500 in Chennai on a weekly basis.

Sponge iron price remains largely stable –Sponge iron (C-DRI) prices remained largely stable this week. SteelMint’s assessment for the same stands at INR 27,100/t exw Raipur, Central India.