India: Imported Scrap Offers Inch Down, Sentiments Turn Bearish on Weak Demand
...
SteelMint learned from market participants that Indian imported scrap market has observed bearish sentiments over this week. Less clarity on global prices and limited availability of offers in the market kept buyers away from buying. Suppliers are likely to turn silent from the next week on seasonality concerns and New Year holidays.
SteelMint's assessment for containerized Shredded from UK/USA stands flat at around USD 340/MT, CFR Nhava Sheva. However, few offers heard for European Shredded in the range USD 335-340/MT, CFR. No significant deal concluded for Shredded scrap this week. Most of the buyers are holding back amid buying interest remains USD 5-10/MT below than prevailing offers.
Some trades for Dubai origin HMS 1 scrap concluded in the range USD 327-330/MT, CFR Nhava Sheva which have marginally corrected as against the last weeks' assessment at around USD 330-335/MT, CFR.
There were some inquiries for bulk scrap cargoes from few Indian buyers but no news was received of deals getting finalized.
South African HMS 1&2 assessment stands at around USD 335-340/MT, CFR and HMS 1&2 (80:20) from Europe and UK stood at around USD 325/MT, CFR Nhava Sheva.
Minor trades for West African HMS 1&2 scrap was booked in the range USD 310-315/MT, CFR however, offers for 20-21 MT containers loading stand mostly at USD 315-317/MT, CFR Nhava Sheva.
Indian Rupee has slightly appreciated in last two days after depreciating to as high as 72.5 levels against USD. It stands at 71.8 today which was trading at 70.8 levels on 7th Dec'18, depreciating by around 1.5% over the week.
Indian domestic scrap prices edged down - Local HMS scrap prices showed further correction on weak fundamental on a weekly basis. Price assessment for HMS 1&2 (80:20) stands at INR 25,900-26,100/MT (USD 360-363), ex- Mumbai, down INR 200-300/MT as against last week's report.
The Northern, Central and Eastern regions have seen marginal price upturn after falling by upto INR 400-700/MT on a W-o-W basis. Chennai based local HMS (80:20) prices stand at around INR 24,600/MT, ex- Chennai, down INR 300/MT against last week, 18% GST extra.
Ship breaking market stands volatile amid currency fluctuation - Shaky ground for local steel plate prices coupled with Indian Rupee once again breached almost 72 mark against USD, kept buyers tentative in their offers and acquisitions and therefore missing out much of market tonnage as a result.
Ship plate prices remain hovering over the week and stand at INR 30,200-30,400/MT, ex-Alang levels for 16 mm plate today. Ship breaking prices showed further correction and assessed at USD 415/LDT for general dry bulk cargo; at USD 430/LDT for containers and at USD 420/LDT for tanker on CNF India basis respectively.
