India: Imported scrap market continues to remain less active

India's imported scrap market sentiments have continued to remain subdued for yet another week. Market players believe that Indian imported scrap trade is likely to remain subdued amidst disparity in bids and offers, high shipping costs, and shortage of containers.

Notably, the current imported scrap offers are not workable for the Indian market as the landed price of imported scrap is still costlier than domestic substitutes. Apart from HMS and lower grade scrap, no firm deals in shredded was reported. Many global suppliers are more interested in dealing with another South Asian country, Pakistan, where confirmed deals of around 5,000 t were reported at $522-525/t, CFR Port Qasim recently.

Recent offers in containers for Indian market

• Fresh offers for UK/EU-origin shredded are now at $520-525/tonne (t) CFR Nhava Sheva, down by $5/t against last week. No buyers are interested in these offers.
  
  
• Dubai-origin HMS 1 offers were heard at around $485/t CFR Nhava Sheva.
  
  
• HMS 1&2 (80:20) from the UAE is being offered at $475/t CFR Nhava Sheva.
  
  

Domestic melting scrap market remains volatile: Melting scrap prices witnessed variations across markets, as per SteelMint reports. In a few locations, scrap prices increased marginally due to limited availability despite a correction in semi-finished steel prices. SteelMint's assessment for HMS was recorded at INR 34,500/t DAP Mumbai, down by INR 100/t w-o-w while prices for Jalna are at INR 35,200/t DAP, up by INR 200/t w-o-w.

SteelMint's benchmark sponge C-DRI (FeM 80%) prices were down by INR 200/t to INR 31,800/t, exw-Raipur. Decline in domestic pellet and iron ore offers have lowered sponge prices.

India's IF-route rebar prices fall: The induction furnace (IF) re-bar market witnessed limited buying inquiries. Despite low demand in the spot market in most areas, manufacturers kept fluctuating re-bar offers and adjusted prices as per quantity and payment terms. However, prices remain weak in markets on sagging raw materials prices and dull demand. As per SteelMint's assessment, induction furnace (IF, Fe 500)-grade rebar prices in Mumbai stand at INR 47,600/t exw, down by INR 1,500/t exw w-o-w.