India: Imported scrap prices fall further, market quiet on holidays

Considering the year-end, the global scrap market seems to be enjoying the winter holidays with the majority of yards staying away. Meanwhile, the imported scrap markets across globe continued trending down.

"Buyers less active to restock due to the high level of steel inventory with mills, due to low demand from end-users. However, later in the week, semi-finished and finished steel prices have witnessed a recovery which may boost imported scrap bookings in the next week," said a prominent scrap trader.

Meanwhile, buyers are mostly interested in nearest origin cargo or in-arrival cargo which is available at a low price and fast delivery, he added further.

Recent offers and deals

• Price indications for the UK/EU-origin shredded in containers fell to $525-530/t CFR Nhava Sheva, down further by $5-10/t w-o-w. However, no firm bookings were reported.
  
  
• Another deal was concluded, in which around 2,000 t of UAE HMS 1&2 (80:20) was booked by western India-based steel mill at $455-460/t CFR Kandla earlier in the week.
  
  
• Offers for UAE-origin HMS 1 were being quoted at $465-470/t CFR.
  
  

Market highlights

• Domestic scrap prices inch down w-o-w: Domestic scrap prices saw a downward correction in all regional markets on w-o-w basis. Factors behind the drop in prices seem to be a lack of movement in finished steel products, which weighed on raw material and semi-finished steel prices, thereby contributing to negative market sentiments. SteelMint's assessment for HMS (80:20) was recorded at INR 35,800/t ($477/t) DAP Mumbai, down by INR 400/t w-o-w while prices in Jalna were assessed at INR 35,000/t DAP ($466/t), down by INR 100/t w-o-w.
  
  
• Sponge iron prices move up: Tight supply, active demand, and rise in pellet offers collectively supported sponge iron prices. After a few deals concluded throughout the week, market participants are expecting a further surge in offers. Sponge iron P-DRI (FeM 80%) prices rose by INR 1,100/t w-o-w to INR 29,900/t ($398/t) exw-Raipur.
  
  
• IF-grade rebar prices decline: Rebar prices remained under pressure on weak demand due to poor buying inquiries and weak spot transactions. High volatility in semi-finished steel prices and consistent price correction resulted in re-rollers reducing quotations, as per market requirements. Prices decreased by INR 600/t w-o-w to INR 49,700/t ($662/t) exw-Mumbai.
  
  

Outlook: India's imported scrap trade is likely to gain momentum after the holidays, given the recovery in domestic scrap and steel prices seen towards end of this week which is likely to fuel optimism amongst the secondary mills.