India: Scrap imports gain momentum on rising domestic steel, scrap prices

Ferrous scrap import trades in India picked up towards the close of the week after remaining inactive earlier in the week. With the increase in domestic scrap and steel billet prices towards the weekend, imported HMS scrap trades gained some momentum.

However, trades continued to happen for small quantities, while suppliers are trying to sell their material to India in the absence of active enquiries from neighbouring countries during Ramadan.

On the other hand, Indian buyers are trying to lower offers and even mills are preferring domestic alternatives. Mills anticipate some fluctuations but the offers are unlikely to go up further.

Recent deals

• Fresh offers for UK/EU origin shredded are being quoted at $645-650/t CFR levels, down significantly by $10-15/t w-o-w. A few deals at small quantities have been heard concluded at these offers.
  
  
• 2,000 t of South Africa- and Poland-origin HMS 1&2 (90:10) have been sold at $590-595/t CFR Chennai.
  
  
• A Punjab-based steelmaker booked UAE origin HMS 1&2 (90:10) at $565/t CFR Mundra.
  
  
• A sizeable quantity of Middle East-origin HMS 1 and PNS were booked at $565-570/t CFR.
  
  

Domestic scrap prices rise: Domestic scrap prices witnessed a sharp hike due to strong sponge iron prices amid healthy transactions in semi-finished and finished steel products. Prices in the near term may increase slightly, particularly in the western region, trader sources informed.

SteelMint's assessment for HMS (80:20) was at INR 43,500/t DAP ($570/t) Mumbai, up INR 1,000/t ($13/t) w-o-w. Prices in Jalna were assessed at INR 44,300/t DAP ($580/t), up INR 700/t ($9/t) w-o-w.

IF rebar prices remain supported: IF rebar prices increased across different markets in India. The hike in steel billet prices supported domestic rebar offers. The market saw limited buying enquiries and trading activities. However, in a few markets in south India, bulk trading remained absent. Manufacturers are offering discounts according to orders and payment terms.

Domestic IF rebar (Fe 500) prices stand at INR 64,400/t ($843/t), moving up sharply by INR 2,600/t ($34/t) from INR 61,800/t ($809/t) exw Mumbai.