Falling Steel prices in Indian market has prompted Middle East based Scrap suppliers to reduce offers to India.
Middle East based Scrap suppliers have corrected offers by USD 4-5/MT. Current offers are prevailing at USD 330-332/MT CIF Nhava Sheva against USD 334-336/MT CIF few days back for HMS 1&2.
Few trades have been reported at these levels. However, some buyers anticipate prices may correct further owing falling Ingot/Billet prices and depreciating Indian Rupee against USD. Rupee is trading at 61.45 per USD.
Some buyers also mentioned that they selected offers from Middle East at around USD 325/MT CIF and Europe at USD 330/MT CIF for HMS 1&2 and USD 340/MT for Shredded.
Billet and Ingot prices have corrected by INR 200-300/MT W-o-W and by INR 1,300/MT M-o-M in Mumbai, one of the largest buyers of imported Scrap.
“We will not be surprised if Scrap prices correct further looking at subdued demand of finished steel. Most of the furnaces have cut down production in western & southern region,” said an induction furnace owner based in western India.
Imported Scrap offers to India have corrected by USD 25-30/MT in last 1-month due to cheaper offers of Billet from China and falling Scrap prices in Turkey, which is the world’s largest importer of Scrap.
Scrap imports to India have fallen in the month of October owing to festive season.
Scrap Imports to India – Origin Wise
Scrap imports are not viable in eastern region of India owing to falling Pig iron prices. Current offers for Pig iron are INR 22,200-22,400/MT (ex-Durgapur). Whereas, cost of Scrap imports will not be less than INR 23,500-24,000/MT, according to Ingot/Billet manufacturers based in East India.
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