India: Inquiries for Imported Scrap Improve after Recent Decline in Offers

In conversation with industry participants, SteelMint learned that imported scrap offers to the South Asian markets have fallen significantly this week on account of the sharp decline in the Turkey prices in the last few days. Offers to all 3 markets, India, Pakistan and Bangladesh have dropped by around USD 15-20/MT, while buying activity picked up towards the latter half of this week.

The Indian market has observed an increase in inquiries for imported scrap since yesterday after several weeks of silence, as post the recent plunge in global offers, the landed cost of imported scrap finally dropped to the similar range as its domestic alternatives, which have been down for quite some time.

SteelMint's assessment for containerized Shredded from the UK, Europe and USA to India stands at USD 275/MT, CFR Nhava Sheva, down sharply by over USD 15/MT against last week's report. Few bookings were reported today, while the sentiment of the market has turned somewhat positive.

HMS offers too have dropped considerably on lower buying interest, with Dubai origin HMS 1 currently being offered in the range of USD 260-265/MT CFR Nhava Sheva as per quality while UK and European origin HMS was traded at around USD 255/MT CFR. Higher quality HMS from South Africa was offered in the range of USD 265-270/MT CFR.

With production cuts by many Indian steel mills on account of low sales Indian steelmakers are looking to procure raw material at low prices. The market is expecting that decent trades for imported scrap is likely to be witnessed in the coming week, while overall domestic sentiments can only be expected to improve by October end.

Pakistan and Bangladesh resume scrap bookings at lowered prices -

Assessment for Shredded scrap to Pakistan from the USA and Europe stands at USD 270-275/MT, CFR Qasim down USD 15-20/MT against last week, with several deals in containers being reported in the last few days, while HMS scrap found little interest among Pakistan buyers, amid duties and clearance costs.

Shredded scrap offers to Bangladesh have also dropped to USD 290/MT CFR Chittagong, from European and North American origins, down USD 13-15/MT from earlier in the week. HMS scrap was also actively purchased at lowered prices, with HMS 1&2 (80:20) from Chile & South American origin being traded at USD 275-278/MT CFR. HMS 1 from South Africa and Australia was assessed in the range of USD 280-285/MT CFR, as per quality. A Chittagong based mill today booked around 4,000 MT HMS (80:20) from Chile at around USD 275/MT, CFR Chittagong.