India: Imported scrap trade slows down on rising offers

Indian imported scrap market witnessed a slow down in trade later this week after remaining active in the last couple of weeks. As the global market has been impacted due to supply chain constraints caused by the Russia-Ukraine war, imported scrap offers have continued to rally. However, with a slowdown in semi-finished and finished steel trade towards the end of the week, imported scrap inquiries turned limited.

The yards are holding back and waiting for a clear market direction. On the other hand, steel mills prefer to book imported material, mostly from Africa, as its prices are on par with domestic scrap prices, SteelMint learnt.

Fresh offers

• Fresh offers for imported shredded from UK/EU-origin are being quoted at $635-640/t CFR levels, hitting a new-high with a considerable rise of $30-40/t w-o-w. Meanwhile, buyers are bidding lower by $10-15/t.
  
  
• A deal for 500 t of shredded was concluded at $625/t CFR early this week.
  
  
• Fresh offers for Dubai-origin HMS 1 & 2 (80:20) in containers are at $600/t CFR Nhava Sheva, witnessing a hike of around $50/t w-o-w. A deal of 250 t of HMS 1 from Dubai was concluded at $610/t CFR Mundra Port recently.
  
  
• In a deal concluded at the beginning of the week, around 1,000 t of West African HMS 1&2 (80:20) has been booked at $590/t CFR Nhava Sheva basis.
  
  

Meanwhile, imported scrap prices inched up in a recently concluded deal by Turkish mills. A Baltic-origin cargo comprising HMS (80:20) was booked at $645/t CFR Turkey and shredded material at $685/t CFR Turkey, by a steel mill based in the Mediterranean region. A Europe- origin cargo with HMS (80:20) was booked at $640/t CFR Turkey.

Domestic market overview

• Scrap prices up w-o-w: Domestic ferrous scrap prices remained positive across regional markets despite trending at an all-time high and on supply constraints. Prices strengthened on a d-o-d basis on rising raw material prices, especially coal, amidst insufficient scrap inflow into the market at a few locations. HMS (80:20) prices moved up by INR 2,600/t w-o-w to INR 46,600/t ($610/t) DAP Mumbai.
  
  
• Sponge iron prices rise further: Sponge prices edged higher on the back of increasing coal prices. Despite that fact, few deals were reported throughout the week. However, mills' inquiries have now reduced from the last few days. Pellet-based DRI (P-DRI, FeM 80%) prices rose by INR 1,200/t w-o-w to INR 43,000/t ($563/t) exw-Raipur.
  
  
• Rebar market witnesses limited buying: Induction furnace rebar prices remained elevated in the domestic market despite weak trading activity. Buying inquiries slowed down in some markets at high prices. However, manufacturers received the desired price support due to enough booking orders at previous prices. Domestic IF-route rebar prices stand at INR 72,000/t ($943/t) exw-Mumbai, up by INR 4,500/t w-o-w.