India: Imported scrap market quiet on limited bookings

The imported scrap market remained slow for the second successive week. This week, the market was mostly quiet and no activities were recorded due to negative domestic sentiments. Meanwhile, limited scrap offers were available, as major suppliers were more interested in neighboring countries like Pakistan.

Market insiders expects clear market direction from next week. "There are no firm deals, but prices are less likely to correct as EU scrap export ban is looming and the approaching winter may keep prices supported," said a major steel producer.

Recent offers

o Shredded offers remain stable at $560-565/t CFR Nhava Sheva levels.
o UAE-origin HMS 1 is being offered at $505-510/t CFR levels, while HMS 1&2 (80:20) from the same origin being offered at $495-500/t CFR levels.

Additionally, construction and automobile production are likely to resume at full throttle after a long gap. However, container and material availability, freight rates, and, of course, the discrepancies in bids and offers have kept buyers in wait-and-watch mode this week, SteelMint learnt from market sources. Majority of the buyers have preferred to procure domestic scrap on cost competitiveness.

Domestic scrap prices fall: Ferrous scrap prices fell by INR 1,000/t w-o-w. The key reason behind the price correction is lack of demand for finished steel products, which put pressure on prices of semis. However, in some markets in the western region, prices remained flat despite falling prices of semis and bid-offer disparity.

SteelMint's assessment for HMS (80:20) was recorded at INR 37,000/t DAP Mumbai, lower by INR 500/t w-o-w, while prices for Jalna are at INR 36,100/t DAP, down by INR 2,300/t, w-o-w.

IF route rebar prices fall further: Demand for rebar steel produced via the induction furnace route remained weak across the major supply regions, with prices further declining. However, at a few locations, manufacturers are still preferring to keep prices unchanged despite weak buying enquiries in the spot market. IF-grade rebar prices remained under pressure, dropping INR 1,400/t to INR 51,200/t exw-Mumbai.