India: Imported scrap trade slows down, deals booked at lower prices

The Indian scrap market has slowed down towards the weekend, ahead of the Diwali festival next week, SteelMint notes. However, few deals were heard booked at favourably lower prices. Most market players are staying away from the market for the festival.

In addition, limited offers have been received due to disparity in bids and offers. Steelmakers and scrap buyers feel buying activities are likely to pick up after the Diwali festival, this being the peak season for downstream industries like construction.

Recent deals and offers

• Fresh offers for UK/EU-origin shredded are at $560-565/t CFR levels, unchanged w-o-w.
  
  
• A decent quantity of West Africa-origin HMS 1&2 (80:20) was heard to have been booked at $485/t CFR Mundra basis, down $10/t w-o-w.
  
  
• Fresh offers from UAE-origin HMS 1 is being quoted at $505-510/t CFR levels, while HMS 172 (80:20) is cited at $495-500/t CFR NHSV levels, inching down w-o-w.
  
  

Domestic scrap prices fall w-o-w: Ferrous scrap prices fell by INR 1,000/t w-o-w. However, the short-term price outlook is volatile, with prices likely to fluctuate across markets, trade sources informed SteelMint.

SteelMint's assessment for HMS (80:20) was recorded at INR 36,700/t DAP Mumbai, down by INR 1,000/t, w-o-w, while prices for Jalna are at INR 37,300/t DAP, down by INR 900/t, w-o-w.

IF route rebar prices fall further: The induction furnace rebar market saw prices fluctuating in some regions, while in certain locations prices stayed stable considering the semi-finished steel price movements. However, owing to lack of buying enquiries, trading activities remained muted in most markets, sources said. IF rebar prices remained under pressure, dropping INR 1,300/t to INR 52,400/t exw-Mumbai.