India: Imported scrap prices up by $20 w-o-w on bullish market sentiments

Imported scrap prices in India strengthened further this week. Global price hike on supply tightness and increased freight rates remained the major factors behind surge in offers. Notably, the prices have reached to two years high as the same levels were recorded during Nov'18. SteelMint's assessment for Shredded scrap in containers of UK/EU origin stands at $360/t CFR Nhava Sheva, moving up significantly by $20 w-o-w.

Confirmed trades-

• A major Indian steel mill has booked 8,000 t of imported scrap in containers this week, sources have shared to SteelMint. The cargo comprises, 4,000 t of shredded scrap from different origins (US, Australia, and New Zealand) at $360/t CFR Mundra and 4,000 t of bundles at $380/t CFR Vizag basis.
  
  
• A decent quantity of UK HMS 1&2 (80:20) has been booked at the $325/t level earlier this week.
  
  
• There was a buzz in the market, heard that Chennai-based steel mill has booked around 2,000 t of shredded in the range of $355-360/t CFR Chennai basis, however, the deal was not confirmed at the time of publishing this report.
  
  

Firm offers - HMS offers from UK were heard around $340/t CFR levels and that from Dubai were reported around $350-355/t CFR levels.

"As expected earlier, after Diwali holidays, market has remained optimistic as other domestic raw materials like sponge iron, iron ore, and domestic scrap prices have moved up further this week" shared a scrap trader.

Domestic melting scrap prices up - Domestic melting scrap prices increased by INR 800-1,200/t w-o-w in almost all major locations, owing to consistently improved semi-finished transactions along with the higher price of sponge iron. Current trade price for HMS (80:20) is assessed at INR 26,500/t Jalna, INR 25,700/t Chennai (DAP).

Sponge iron prices up on iron ore availability issue - Sponge iron demand in central India remains active amid slight price fluctuations. SteelMint's benchmark price assessment of P-DRI stands at INR 25,400/t exw Raipur, up by INR 1,300/t w-o-w.

Outlook- Few scrap traders highlighted decent demand for imported scrap from Indian end-users considering price surge in sponge iron & domestic scrap. However, others remained skeptical about the hike in freight rates & container availability.