India: Imported Scrap Prices Move Up in Recent Deals

After witnessing slow reopening post-holidays, recently imported scrap market in India observed thin trades at high prices. Strong scrap demand, falling inventories and hike in iron ore prices indicate market to remain strong in coming days.

Imported scrap offers showed further rise after New Year holidays in India. Prices for Shredded scrap hiked by USD 5-10/MT on W-o-W basis on recent trades concluded from Indian scrap importers.

Recently, Shredded scrap in containers sold from USA at USD 380/MT, CFR Nhava Sheva basis. Price assessment for Shredded scrap from USA now is around USD 380-385/MT, CFR Nhava Sheva. This is higher by USD 10 than last week's assessment.

Price assessment for HMS 1&2 (80:20) in containers is at USD 350-355/MT from USA and Central America while offers for HMS heard from West Africa at USD 330-335/MT, CFR and from Australia at USD 360/MT, CFR Nhava Sheva. Offers assessed for HMS 1&2 at USD 365/MT from South Africa. No offers were heard for Dubai origin HMS.

Offers for P&S scrap assessed at USD 380/MT, Turnings around USD 340/MT and Bundles at USD 320/MT, CFR Nhava Sheva.

"Few thin trades for Shredded scrap concluded at USD 380/MT recently and now market seems to remain strong due to hike in iron ore prices and strong domestic demand, Prices are expected to remain strong in coming days and even bulk cargo bookings are probable in Jan'18"- shared a source

Few steelmakers are working with the domestic scrap as it is still cheaper over imported. Currently, HMS (80:20) in Mumbai is assessed at INR 23,600/MT and that in Chennai is around INR 23,800/MT (Basic prices, GST @ 18% extra).