Imported Scrap Trade Activities in India Improve as Offers Fall

In conversation with industry participants, SteelMint learned that imported scrap market trades to India witnessed a slight rise, while offers fell amid declining global prices. Some improvement was witnessed in finished steel sales, keeping the market hopeful for the coming weeks.

SteelMint's assessment for containerized Shredded from the UK, Europe and USA to India stands at USD 265-267/MT, CFR Nhava Sheva, down sharply by over USD 7-9/MT against last week's report. Earlier in the week, few bookings were reported at around USD 270/MT CFR, but further fall in the global market later has resulted in a consistent decline in prices. Earlier today a deal for shredded was reported for as low as USD 258/MT CFR. Nhava Sheva

HMS prices have shown less decline on a weekly basis, with UAE suppliers already under pressure. HMS 1 offers from Dubai were reported to around USD 260-265/MT, CFR almost at par with imported shredded, however, trades remained scarce. UK origin HMS 1 is now down to around USD 250/MT CFR.

Only a few offers for South African origin HMS to India were reported to be available, due to permit and other issues, while the offers stand at USD 265/MT CFR Nhava Sheva.

Market participants reported increase in inquiries and improvement in trade activities this week.

Local scrap has shown stability in the last couple of weeks, on supportive sponge Iron prices. The current assessment of local HMS 1&2 (80:20) stands at INR 20,400-20,500/MT (USD 287-288 ) ex Mumbai, mostly stable against last weeks. Chennai based HMS 1&2 (80:20) is being assessed at INR 20,800/MT, ex-works marginally up W-o-W.