India: Imported scrap trade improves, prices are on par with domestic prices

India's imported scrap trade has improved in the last few weeks. Buyers have turned active in making bookings for Mar'22 deliveries to stock up inventory propped up by supportive domestic semi-finished prices.

UK-origin shredded is being offered at $545-550/t CFR levels. However, deals remained muted due to high offers. Market suppliers are highly interested in trading shredded material in Pakistan and Bangladesh at a higher price, SteelMint understands.

Deals and offers

• Offers for Dubai-origin HMS 1 and HMS 1&2 (80:20) are being quoted at $500-505/t and $495-500/t CFR levels respectively, up by $5-10/t w-o-w.
  
  
• Shredded offers are heard at around $555-560/t, CFR Nhava Sheva, but no confirmed deal was heard as Pakistan-based mills actively booked the material at $552-555/t, CFR PQ.
  
  
• In a recent deal, a decent quantity of South America-origin HMS 1&2 (80:20) was booked at $510/t CFR Chennai.
  
  

"Indian buyers are active in the imported market as HMS offers are at par with the domestic prices. However, Dubai and African-origin material are mostly workable at present due to feasible freight rates," said a market source.

Local-imported scrap price spread narrows down: The price gap between domestic material and imported one has narrowed down. Earlier a month ago, imported prices were higher by INR 2,000/t over domestic material. SteelMint's assessment for HMS (80:20) was at INR 38,400/t ($514/t) DAP Mumbai, up by INR 500/t w-o-w, while prices in Jalna were assessed at INR 39,000/t DAP ($522/t), up INR 1,000/t w-o-w.

On the other hand, the landed cost of Dubai origin HMS (80:20) stands at INR 38,900-39,000/t.

"The domestic scrap sentiments have improved in India while many other options in substitutes are also available in the domestic market," said a scrap trader.

Rebar prices remain supported despite limited demand: Domestic rebar prices increased this week in most of the major markets, while producers kept offers stable in some regions. The rise in billets and sponge iron prices supported rebar prices, although buying inquiries remained weak and transactions were dull in the spot market due to higher prices. Domestic IF-route rebar prices increased further by INR 1,800/t to INR 56,400/t ($755/t) exw-Mumbai.

Meanwhile, sponge iron P-DRI (FeM 80%) prices rose by INR 300/t w-o-w to INR 34,800/t ($466/t) exw-Raipur.