India: Imported scrap prices range-bound, trade picks up slightly

India's imported scrap market saw some trade activities this week with some deals concluded. However, not many participants are active at present as they are preferring domestic substitutes over imported scrap.

Recent deals and offers

• Around 1,000 t of UK-origin shredded in containers has been booked at $525/t CFR Nhava Sheva basis. Fresh offers are being quoted at $520-525/t CFR levels.
  
  
• A deal for 2,000 t of West Africa-origin HMS 1&2 (80:20) is heard to have been concluded at around $445/t CFR CNF Mundra. However, many offers are heard at around $450/t CFR levels.
  
  
• Offers for UAE-origin HMS 1 are hovering at $470-475/t and HMS 1&2 (80:20) from the same origin are now cited at $460-465/t CFR levels.
  
  

Pakistan mills have also lowered bids for imported shredded this week. On the other hand, Bangladesh-based mills are actively restocking bulk scrap cargoes owing to container shortage. Notably, Bangladesh mills have booked two bulk vessels from the US and one from Australia in the past one week, SteelMint understands.

Domestic scrap prices up w-o-w: Domestic scrap prices remained supported mainly due to prices of substitute material holding up and the overall positive movements in semi-finished and finished steel prices amid inadequate scrap supply at a few locations. Prices on a daily basis fluctuated slightly throughout the week.

SteelMint's assessment for HMS was recorded at INR 35,000/t DAP Mumbai, up to INR 300/t, w-o-w, while prices for Jalna are also at INR 35,000/t DAP, up INR 200/t, w-o-w.

India's IF-route re-bar prices stable: The induction furnace re-bar market witnessed weak buying inquiries and trading activity on 17 Sept'21 owing to Vishwakarma Puja and uncertain market trends in semi-finished steel prices which led to a slowdown in construction steel demand. High inventories at mills are also putting pressure on re-bar prices. However, manufacturers have adopted a wait-and-watch stance and are expected to adjust prices as per billet price movements.

As per SteelMint's assessment, induction furnace (IF, Fe 500) re-bar prices in Mumbai stand at INR 45,700/t exw, unchanged on a weekly basis.