India: Imported scrap offer shoots up on global cues but buyers remain cautious

- Turkish imported scrap prices touch eight-year high levels
- Trades remain slow as buyers are adopting a 'wait-and-watch' mood
- SteelMint's assessment for shredded scrap in containers up by $30 w-o-w

Turkey - the world's largest scrap importer gave a boom to the global ferrous scrap market when it's recently concluded deals touched eight-year high levels. India's imported scrap offers followed global trends registering a total hike of $50 so far in Dec '20, though limited deals have been reported at these levels. SteelMint's assessment for Shredded scrap in containers of UK/EU origin currently stands at $438/t CFR Nhava Sheva.

A prominent trader highlighted that material availability remains the major factor behind the measurable price hike in the last couple of weeks. "The upcoming winter holidays may slow down the imported scrap market, as major supplying countries like the UK, and USA may close their yards for the next two weeks and may restart in the second week of Jan '21", he added.

Most buyers are now in wait -and - watch mood and waiting for a price correction. Many steelmakers feel safe to continue their production work with domestic scrap and other substitute products. "If market goes downward from here then those who have purchased at such high rates are going to be in deep trouble", said a western India based buyer.

Recent imported scrap offers-

While buyers' bid price is comparatively very low, buyers are showing less interest at higher levels. A decent quantity of HMS 1&2 (80:20) has been concluded at $400/t CFR level.

Indian domestic scrap market overview - Melting scrap prices have remained supported and recorded a hike of INR 1,500-2,000/t w-o-w, as mills increased their bids. SteelMint assessment for HMS in western India stands at INR 29,200/t DAP Jalna and INR 29,800/t DAP Chennai level. SteelMint learned from trade participants that scrap availability is limited and hence sellers are holding back offers in the assumption of a further price hike.

Sponge iron price remains stable, trades improve- Sponge iron (C-DRI) prices too, showed a significant hike of INR 700/t w-o-w SteelMint's assessment for the same stands at INR 26,600/t exw Raipur, central India.