India: Imported scrap trade remains dull as mills opt for domestic substitutes
The imported scrap market in India continued to extend silence with no active movements being witnessed for yet another week. Many steel mills are waiting for a clearer m...
The imported scrap market in India continued to extend silence with no active movements being witnessed for yet another week. Many steel mills are waiting for a clearer market direction since offers were firm for the last couple of weeks but mills opted to secure domestic material, the latter being more cost effective. Most of the buyers are interested in booking short sea distance as they are looking for prompt delivery.
Meanwhile, mills are booking as per their requirement due to the unsupportive finished steel market and considering the financial year-end, SteelMint learnt.
- Fresh offers for UK-origin shredded are at $660-665/t CFR levels, moving up by $10/t w-o-w but deals remained absent.
- UAE-origin HMS was being offered at $575-580/t CFR levels. Deals for 2,500 tonnes of Dubai-origin HMS1 was heard concluded at $590/t CFR Mundra mid-week.
- Deals for 2,000 tonnes of South African HMS were heard concluded at $615/t, CFR Chennai mid-week.
"If the neighbouring countries are absent from the market for Ramadan then global suppliers are likely to offer actively to India and the market can see some positive sentiments," said a market source.
Domestic market situation
- Domestic scrap prices remain competitive: Domesric ferrous scrap prices saw minor variations across regions. In the northern region, especially Mandi Gobindgarh, marginal price correction was observed following changing semi-finished steel prices. In the Chennai market, prices remained supported by tight supplies. Scrap prices remained stable in other locations on average procurement ahead of the fiscal year-end. HMS (80:20) prices slipped to INR 43,200/t ($568/t) DAP Mumbai.
- Domestic sponge iron market active: SteelMint's price assessment for sponge P-DRI (FeM 80%) fell by INR 2,000/t to INR 38,200/t exw-Raipur from INR 40,000/t recorded a week ago. Demand improved as compared to last week, which was quite low for a couple of days. Deals were actively recorded on the back of price corrections.
- Rebar prices down w-o-w: Declining demand and falling prices of sponge iron and steel billets triggered the sharp fall in rebar prices. The lack of interest from buyers over procuring material and delays in payment ahead of the fiscal year-end supported the price correction, SteelMint notes. Domestic IF rebar (Fe 500) prices stand at INR 66,800/t ($878/t) from INR 68,300/t ($898/t) exw-Mumbai.