Indian Imported Scrap Market Standstill; Offers Rangebound

SteelMint learned from industry participants that Indian market has remained less viable for scrap imports for yet another week. Offer levels remained rangebound in very limited trades reported so far.

Global scrap prices stand stable with HMS 1&2 (80:20) concluded recently at USD 294-295/MT, CFR Turkey. While participants indicate that South Asian scrap prices likely to remain supported in the near terms.

SteelMint’s assessment for containerized Shredded from UK, Europe and USA stands flat at USD 315-320/MT, CFR Nhava Sheva against last week’s report, although few offers were reported even in the range of USD 310-315/MT, CFR no major buying interest was witnessed.

Some Ludhiana and Chennai based scrap importers brought limited scrap in containers on their urgent needs while most of the steel mills in Kandla and West Coast regions were standstill amid sufficient scrap inventories in hand. Turning scrap in limited quantity reported to have sold at USD 270-275/MT, CFR Chennai.

Offers of HMS 1 scrap from Dubai and South Africa origin reported at around USD 305-310/MT, CFR Nhava Sheva. HMS 1&2 (80:20) from Dubai assessed at around USD 300/MT, CFR. West African HMS 1&2 (80:20) assessed flat around USD 290/MT, CFR Nhava Sheva.

"Suppliers in UK, Europe and US are presently observing a good domestic demand thus, prices are not lowering further. This has resulted in very limited availability of cheaper HMS scrap being offered to South Asian countries. Although Shredded was traded at USD 310-313/MT, CFR Qasim earlier this week, now it is being offered at and above USD 315/MT, CFR Qasim" shared a leading trader from India.

There is still a considerable gap between domestic HMS scrap, which is hovering in the range of INR 21,000-21,500/MT, (USD 305-312) ex-Mumbai and the landed cost of any decent quality HMS scrap imported to India. Meanwhile, Sponge Iron prices are competitive making steelmakers to prefer Sponge Iron and importers to keep away from inquiries. Also, production cuts continue as finish steel demand hasn't shown any significant recovery yet.

Indian domestic scrap prices rangebound - Domestic scrap prices also remained rangebound in all major markets. Lowered production seemed to have lowered supply tightness in the market. The current assessment of local HMS 1&2 (80:20) stands at INR 21,000-21,300/MT (USD 305-309), CFR Mumbai, marginally down by INR 200/MT against last week. while Chennai based HMS 1&2 (80:20) assessed at INR 20,500-20,700/MT, ex-works. Indian Rupee remained in the range 68.5-68.8 against USD over the week.