India: Tata Steel Invites Bid for 15,000 MT Imported Steel Scrap

Tata Steel Ltd has issued another RFQ (Request for Quotation) for procurement of 15,000 MT imported steel melting scrap for its newly acquired plant Bhushan Steel Limited recently, SteelMint learned from industry sources.

Out of the total issued quantity, 9,000 MT of HMS and 6,000 MT of Shredded scrap to be quoted on CIF Vizag port (India east coast) and will be sourced through e-auction.

According to the RFQ, scrap packaging should be done in sealed 20ft containers and the origin could be Australia/New Zealand/UK/ Europe/US/North America/South Africa/Malaysia/Singapore/Middle East.

A couple of days back the company official reported that in the last tender floated for total 20,000 MT by the company, only 12,000 MT of scrap was purchased at an average price of Shredded at USD 355/MT and HMS 1 at USD 345/MT on CFR Vizag port basis while around USD 3-4 can be considered as an additional cost of interest on 90 days LC to suppliers cost.

About Tata Steel BSL - In 2018, Tata Steel acquired the Tata Steel BSL Limited (formerly Bhushan Steel Limited) through its wholly-owned subsidiary with a steel production capacity of 5.6 MnTPA located in Odisha.

Global scrap prices move down USD 15-20/MT in last 2 weeks’ time - Turkey, the largest importer of scrap which drives global imported scrap prices has observed successive fall on limited trades being reported since the last two weeks. In the recent US deal concluded, Marmara based steelmaker booked a 30,000 MT cargo comprising HMS 1&2 (80:20) at USD 306/MT, Shredded USD 311/MT and Bonus scrap at USD 316/MT, CFR Turkey.

According to SteelMint’s price assessment, US origin HMS (80:20) scrap moved down to USD 306-307/MT, CFR Turkey. While HMS 1&2 (80:20) of Europe origin stands at around USD 303-305/MT, CFR.

India observes imported scrap trades in containers - Indian imported scrap activities remain slow amid upcoming elections and less clarity on global prices. In recent trades reported for containerized scrap by leading buyers based on Western coast, Shredded booked from UK, Europe and US stands at around USD 330/MT, CFR Nhava Sheva, South African HMS 1&2 at around USD 335-338/MT,CFR from South Africa and HMS 1 from Dubai at around USD 325-330/MT, CFR depending on quality.