India: Imported Scrap Offers Up; Trades Slowdown

Imported scrap offers to India have continued to rise for another week following the global upside. SteelMint's assessment for imported scrap to India has increased by USD 10/MT W-o-W. No major deal for containers was reported this week due to mismatch in buyers’ bids and offers from suppliers.

SteelMint’s offers for containerized Shredded from the UK, Europe and USA to India has climbed up to USD 280-285/MT, CFR Nhava Sheva as against USD 270-275/MT levels observed last week. Although offers have moved up by USD 10/MT W-o-W, but lower bids have kept trades low.

Prior to this also Indian buyers had gone out of the market for imported scrap in July and Aug’19 when the high prices amid domestic downtrend had made scrap import nonviable for steelmakers. Further increase in offers now may lead to a similar silence repeating again, as local sentiments are not expected to pick up in the short term.

HMS scrap offers moved up slightly this week with HMS 1 (super) from Dubai now being offered at around USD 267-270/MT CFR while HMS 1&2 (with ci & gi) from Dubai was being offered at around USD 262-265/MT CFR.

European origin HMS 1&2 (80:20) offers now stand rangebound at USD 255-262/MT CFR Nhava Sheva, as per quality, while high quality South African origin HMS 1 offers were reported at around USD 270/MT CFR, amid few inquiries.

A trade source shared that a fresh bulk booking to India concluded recently with 32,000 MT of composite cargo to Kandla port for December shipment, however the deal and price for the booking could not be verified by other sources at the time of publishing.

Trades pick up in Pakistan - After remaining silent during the opening of the week, buying activity picked up in Pakistan at increased prices, as more clarity on prices was achieved. A global supplier sold 3000 MT of Shredded scrap at USD 278/MT CFR Qasim, while few deals in containers for USD 281-285/MT CFR were also witnessed later in the week. Offers for Shredded scrap remains at USD 280-285/MT CFR Qasim.