India: Imported Scrap Prices Inch Down in Recent Deals

SteelMint learned from industry participants that Indian imported scrap prices inch down on a weekly basis in limited deals reported. Following continued global price fall, Indian scrap importers remain majorly cautious before buying actively amid weakening local semi-finish prices and still subdued finish steel demand.

SteelMint’s assessment for containerized Shredded from US and Europe, UK remained in the range USD 320-325/MT, CFR Nhava Sheva. Few offers are also heard at USD 318-320/MT, CFR Nhava Sheva. Prices have slightly inched down against last week’s report. However, few deals of Shredded scrap from leading suppliers in UK reported in the range of USD 323-327/MT, CFR.

It is being expected that global scrap prices may show slight correction further, however, chances of sharp downfall are very limited. SteelMint’s assessment of bulk HMS 1&2 (80:20) stands at USD 290-293/MT, CFR Turkey.

According to sources report, a bulk cargo deal of around 40,000-45,000 MT mixed scrap from Europe origin was under discussion in the market by west coast based steelmakers, however, the confirmation on this deal is still awaited.

UK and Europe origin HMS scrap in containers remain at around USD 300-305/MT, CFR Nhava Sheva. While good quality HMS 1&2 from South America was being offered mostly at around USD 310-315/MT, CFR.

As most of the suppliers remain slowly returning after Eid holidays, Dubai origin HMS 1&2 scrap traded in very limited volume in the range of USD 317-323/MT, CFR Nhava Sheva. South African HMS 1&2 assessment stands in the range of USD 320-325/MT, CFR.

Few trades for West African origin containerized HMS were reported in the range of USD 305-310/MT, CFR India, however, domestic scrap prices stand more competitive with imported scrap this week. Offers for Turning scrap from European origin heard at around USD 295/MT, CFR.

Domestic melting scrap prices softened further amid lowering billet prices - India's domestic scrap prices lowered further by INR 300-500/MT (USD 4-7) despite average demand following correction in semi-finish prices.

“Lowering billet and sponge iron prices in most of the regions of the country put domestic scrap prices under pressure, on the other hand, the continued downtrend in global ferrous scrap prices keeps sentiments weak for imported scrap” shared a source.

Assessment of local HMS 1&2 (80:20) stands at INR 24,300-24,500/MT (USD 348-351), ex-Mumbai down INR 200-300/MT as against last week and INR 22,800-23,000/MT (USD 327-330), ex-Chennai. USD/INR exchange rate was hovering in the range 69.3-69.7 against USD over this week. Notably, after sponge iron prices hit around 18 months low, billet prices in Mumbai have dropped by around INR 500-600/MT further this week keeping local support limited for scrap imports.