India: Imported Scrap Market Inquiries Up on Strengthening Rupee

SteelMint learned from market participants that Indian imported scrap market observed increased inquiries on strengthening of Rupee against USD

However, offers remained almost stable after moving down by USD 10/MT over the week following slide in global offers. Limited trades concluded as market observes "wait & watch" scenario. Participants turn hopeful on pickup in trade activities next week.

SteelMint’s assessment for containerized Shredded of UK and Europe stands at around USD 340-345/MT, CFR Nhava Sheva, down USD 10/MT as against USD 350-355/MT report last week. Minor trades for Shredded scrap reported at around USD 340/MT, CFR during mid of the week.

Offers for Dubai and UK based HMS 1 stand at USD 325-330/MT, CFR Nhava Sheva. While HMS 1&2 (80:20) assessed stable at around USD 325-328/MT from Europe and other origins. South African HMS 1&2 stands at around USD 340/MT, CFR Nhava Sheva.

Limited trades for West African HMS 1&2 scrap heard this week. Offers for 22 MT containers loading stand at USD 317-320/MT, CFR Chennai and an assessment stands at around USD 315-320/MT, CFR Nhava Sheva in 20-21 MT containers.

“Slight pickup in activities is expected in next few days after which US/UK suppliers are likely to close down on seasonal concerns.” shared a source.

INR has been recovering successively and hit 3-month high. It stands at 69.8 against USD today, which was at 71 levels a week ago.

Indian domestic scrap prices inch up after falling - Local HMS scrap prices slightly move up today after falling this week in major markets. Currently, HMS 1&2 (80:20) basic prices stand at INR 25,600-25,800/MT (USD 369-370), ex- Mumbai, down INR 800/MT as against last week’s report. Prices in Northern, Central and Eastern regions moved down by INR 400-700/MT on W-o-W basis. The gap between imported and domestic scrap remained narrowed over the week.

Chennai based importers observed limited trades for West African scrap. Local HMS (80:20) prices stand at around INR 25,800/MT, ex- Chennai, down INR 500/MT W-o-W, 18% GST extra.

Ship breaking market eyes rebound - Dollar impending below 70 levels indicates sign of rebounce in Alang’s market. Two tankers comprising 45,541 LDT sold last week as Offshore and Green units continue to deliver into India over other subcontinent markets. Ship plate prices rebound today to INR 30,800-30,900/MT, ex-Alang levels for 16 mm after dipping down to INR 30,300/MT last week. Ship cutting prices assessed at USD 420-425/LDT for general dry bulk cargo; at USD 440-445/LDT for containers and at USD 430-435/LDT for tankers on CNF India basis respectively.