India: Hike in domestic steel prices likely to boost imported scrap trade

India's imported scrap trade maintained its momentum as a few HMS deals were concluded recently. Hike in domestic steel prices is likely to keep scrap buyers active in booking imported scrap. "Buyers might book fresh slots of imported scrap in the coming months considering the price support in the semi-finished and finished steel segments," a trader stated.

Recent deals and offers

• A decent quantity of HMS1 of UAE-origin has been sold at $485-490/t, CFR Nhava Sheva.
  
  
• In another deal, 500 t of South America-origin HMS was sold at $495/t, and 1,000 t of HMS from West Africa was traded at $480-485/t, CFR Chennai.
  
  
• Indications for UK-origin shredded are being heard at $545-550/t CFR. However, bids are lower by $5-10/t.
  
  

"Currently, the market is stable and due to high offers buyers are ready to increase bid prices," said a scrap trader. Additionally, the domestic semi-finished and finished market is also showing a positive trend, he added further.

• Domestic scrap prices remain supported: Hike in coal prices improved sponge iron prices and semi-finished steel prices, which ultimately provided support to finished steel prices despite limited demand in a few regions. Overall, a positive steel market supported scrap prices. The near-term outlook for scrap prices remains range-bound without major changes, market sources informed. SteelMint's assessment for HMS (80:20) is at INR 37,300/t ($501/t) DAP Mumbai, unchanged w-o-w, while prices in Jalna were assessed at INR 37,600/t DAP ($505/t), up INR 300/t w-o-w.
  
  
• Sponge iron prices up on tracking billets market: Manufacturers are keeping prices high on renewed demand amid rising raw material and billet prices against sufficient orders. Sponge iron P-DRI (FeM 80%) prices rose by INR 600/t w-o-w to INR 33,000/t ($444/t) exw-Raipur.
  
  
• Rebar prices up on limited buying: Induction furnace rebar prices continued the uptrend in most markets. Continuously rising raw material prices in the major markets supported high rebar prices. Trade varied from region to region and the lack of bulk trading in most markets was due to the fact that buyers remained cautious about procuring on higher prices, SteelMint learnt from sources. Prices increased by INR 800/t w-o-w to INR 53,000/t ($712/t) exw-Mumbai.