India: Imported Scrap Market Standstill on Falling Steel Prices

In conversation with industry participants, SteelMint learned that Indian market for imported scrap has remained silent with no major trades being reported in this week, while offers have slightly moved down. The continued less-viability of imported scrap, amid prices of domestic alternatives remaining flat, has kept the inquiries very limited, in addition to which the current global standoff, has widened the gap between offers and bids from Indian buyers.

SteelMint's assessment for containerized Shredded from UK, Europe and USA stands at USD 315-316/MT, CFR Nhava Sheva, narrowing down the range by USD 3-4/MT against last week's report, amid very little interest for buying. However, good domestic demand in European countries is keeping the export offers supported, as suppliers are not keen to sell at low prices. Apart from steelmakers requiring imported scrap for blending necessitates of their furnace, negligible inquires reported in the market.

Bulk scrap offers for 30,000 MT average size cargoes stood at USD 330/MT CFR Kandla for shredded and USD 325/MT CFR for HMS, however no demand for the same was reported. Meanwhile a bulk vessel "Handy Stranger" carrying 33,000 MT of scrap from USA, is scheduled to arrive at Kandla port on 28th July'19.

Trades of HMS scrap from Dubai origin have fallen recently, amid saturation from both sellers and buyers end, with offers being reported at around USD 290-295/MT, CFR Nhava Sheva, depending on quality, while South African origin HMS 1 was assessed at around USD 305/MT, CFR.

West African HMS 1&2 (80:20) assessment also fell to around USD 275-285/MT, CFR Nhava Sheva, depending upon quality and container size.

"Falling domestic steel prices have lowered imported scrap buying interest" traders shared.

Indian domestic scrap prices inch down - With several steelmakers operating at lowered capacities in the current market scenario to cut losses, domestic scrap demand has also been affected, while prices marginally decreasing on weekly basis. The current assessment of local HMS 1&2 (80:20) stands at INR 20,900-21,200/MT (USD 303-307), CFR Mumbai, marginally down by INR 100/MT against last week. While Chennai based HMS 1&2 (80:20) assessed at INR 20,100-20,400/MT, ex-works. Indian Rupee remained in the range 68.9-69.1 against USD over the week.