India: Imported scrap trade quiet amidst volatile sentiments

India's imported scrap market remained quiet this week as market players opted to wait and watch amid volatility in the market. However, offers from global suppliers remained on the higher side. In addition, lower domestic prices also weighed on imported scrap trade.

Fresh offers for UK/EU-origin shredded are being offered at $655-660/t CFR Nhava Sheva levels. Yet deals remained absent at these levels. "People are looking for short sea distance cargo, due to uncertain market situations. However, offers are still at the higher side," said a scrap trader.

UAE-origin HMS is being quoted at around $585-590/t CFR levels. Additionally, other neighbouring countries like Pakistan and Bangladesh also have slowed down imported scrap trade ahead of the Ramadan month. Hence, suppliers are now actively looking at the major scrap importer, Turkey, to sell their material at high prices.

"Imported scrap buying has slowed down. As the fiscal is about to end, mills are busy in settling their accounts. Hence, trade activities are likely to remain slow in the next week too," said a trader.

Factors weighing down India's imported scrap sentiments-

• Melting scrap prices fall: Tracking the trend of semi-finished steel prices and due to low demand for finished steel products, domestic scrap prices dropped drastically. Market participants are expecting that prices may drop further. HMS (80:20) prices slipped to INR 43,400/t ($570/t) DAP Mumbai after rising to INR 44,500/t.
  
  
• Rebar trade remains limited: Indian IF-rebar market saw limited buying inquiries across regions due to the uncertainty about raw material prices in the spot market. Traders are cautious about buying the material, compelling rebar producers to adjust prices accordingly. Domestic IF rebar prices stand at INR 68,300/t ($896/t) exw Mumbai.
  
  

Outlook: India's imported scrap market may continue to remain dull in the coming week, owing to the disparity in bid and offer. Sources expect that steelmakers may raise their bids in the coming week as suppliers expect that offers are less likely to fall in the near term.