India: Imported scrap offers rise further, trades pick-up slightly

Turkey's recently concluded imported scrap deals at increased levels, took the market by storm. Imported scrap prices in India too surged significantly on the back of hike in global scrap prices. However, Indian mills remained slow, since past one month, in booking fresh slots for March shipments. Most of the buyers are purchasing local scrap as it's cheaper than imported scrap.

In secondary market demand is good but not at par with the international market, SteelMint learnt from its credible sources.

Active buying is not taking place at these levels and South India has also stayed quiet. , Good trade activities were observed in Bangladesh at higher levels, a trade source has highlighted.

"Market is following upward trends, still few more price hikes are required for India to match international prices. Stock level has gone down at all steel plants, they could get material as Indian buyers' prices are still low as compared to international offers", shared a prominent market insider.

"Few deals for 500-700 t of shredded have been booked at $465-470/t CFR basis, activities have slightly picked up this week", shared an active market participant.

SteelMint's assessment for containerised shredded of UK/US origin stands at $470/t CFR Nhava Sheva level, increasing sharply by $25-30/t w-o-w.

Recent trades and offers-

• Fresh offers for shredded is being offered at around $465-475/t CFR Nhava Sheva level, up by $20-25 w-o-w
  
  
• HMS 1&2 (80:20) from UK/EU is being quoted around $420-425/t CFR level, whereas same from UAE origin now stands at $410-412/t levels
  
  
• HMS 1 from UAE is being offered at $420-425/t CFR level
  
  

Domestic scrap price mostly stable: Domestic melting scrap market has observed mixed sentiments over a week. Prices were mostly stable in Mumbai region whereas it was slightly up in other major markets. Active trades in semi-finished steel (ingot/billet) trades across the regions supported scrap price hike, trade channels have reported.

SteelMint's assessment for HMS in Western India stands at INR 28,800/t DAP Mumbai, mostly stable w-o-w, and at INR 28,400/t DAP Jalna level (up by INR 500/t w-o-w). Near-term prices are expected to remain supportive for a short period following the global trend.

Rebar prices uptick on moderate trades: Induction grade rebar prices have increased by INR 500/t w-o-w on moderate trades and buying inquiries in Mumbai. As per trade sources, high semi-finished steel cost and appropriate transactions in rebar steel from the last couple of days supported the prices. SteelMint's assessment for Rebar (IF grade) in Western India stands at INR 44,900/t exw Mumbai (up by INR 500/t w-o-w).

Outlook: Indian scrap prices are still behind as compared to a global market. Market insiders believe that prices are likely to go up by further by $10-20 and buyers may come back next week.