India: Imported scrap prices drop by $20 w-o-w, trades subdued

Imported scrap offers have plunged sharply this week tracking global trends. However, trades have slowed down as buyers have opted to wait for prices to come down further. Imported scrap prices in India have declined significantly by $20 w-o-w.

Although yard owners have not slashed their offers, traders are ready to sell their high seas material at even lower levels. Buyers are still preferring domestic substitutes of sponge iron & melting scrap over imported.

"Traders are in panic to sell the materials currently which are already in the high seas. They are offering UK/EU origin shredded in containers at $430-440/t CFR levels but yards are still offering $450-455/t CFR Nhava Sheva. In addition, there is lots of container availability issue from USA" shared a reliable source.

• SteelMint's assessment for containerised shredded of UK/US origin stands at $445/t CFR Nhava Sheva level, registering a sharp fall of $25 w-o-w
  
  
• Few imported shredded scrap offers from yards are being quoted at $450-455/t CFR levels, while bids were comparatively low at $445-450 levels
  
  
• HMS 1 from UAE is being offered at $410-420/t CFR level, down by $25 w-o-w
  
  

Domestic melting scrap price mostly stable: Domestic scrap prices have observed stability on a weekly basis in Western region. Prices in Western and Southern regions remained supportive. Scrap availability is moderate hence no major hikes are expected in the near-term considering limited transactions today specifically in Western region, SteelMint learnt from trade sources. SteelMint's assessment for HMS in Western India stands at INR 29,600/t DAP Mumbai, stable w-o-w, and at INR 29,700/t DAP Jalna level, slightly up by INR 100/t w-o-w.

However, in northern India few sellers are holding their sales in expectation of uptrend amid tighter material availability.

Secondary rebar market remains supportive on rising billet price: Induction grade rebar prices remained supportive owing to consistently rising semi-finished steel prices. Prices in the near term are expected to remain strong, sources have reported. SteelMint's assessment for Rebar (IF grade) in Western India stands steady at INR 46,200/t exw Mumbai w-o-w.

Outlook: Participants expect a clearer picture next week when the stock of high seas gets over.