Indian Imported Scrap Market Silent on Subdued Finish Steel Sales
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SteelMint learned from market participants that imported scrap market in India remained on sidelines for yet another week. Despite of marginal rise in local scrap prices, it remains a preference being easily available over imported scrap for time being. Also, local finish steel and rebar demand yet to pick up as expected.
On dull buying interest shown by Indian importers, very limited inquiries for Shredded scrap heard this week. SteelMint's assessment for containerized Shredded remained stable in the range of USD 355-360/MT, CFR Nhava Sheva. However, most of the suppliers were quoting Shredded not below USD 358-360/MT, CFR.
After Diwali holidays, Dubai based scrap suppliers observed slight lift in offers but on weak domestic fundamentals prices remained range bound in India. According to sources, offers for Dubai HMS 1 assessed in the range USD 335-340/MT, CFR Nhava Sheva. While offers for HMS 1&2 (80:20) assessed in the range of USD 330-335/MT from UAE, Europe and other origins. South African HMS 1&2 assessment remains at around USD 350/MT, CFR Nhava Sheva.
West African HMS 1&2 scrap in 20 -21 MT containers was traded at around USD 324-325/MT, CFR Goa and while the same assessed in the range of USD 327-330/MT, CFR Nhava Sheva.
Participants turn hopeful on the strengthening INR against USD in last 3-4 days. INR stands at 71.8 today as against 73 levels on 12th Nov'18 against USD. Strengthening of INR and increased domestic scrap prices could support trades for imported scrap in upcoming days.
However, global scrap prices are less likely to show a major change in coming 2-3 weeks. Participants believe that activities should pick up as usually December remains a period of seasonal slowdown on plunge in collection rates.
Indian domestic scrap prices remain supported - Indian local HMS scrap prices remain hovering in the range with mixed trend for another week. Currently, HMS 1&2 (80:20) basic prices assessed at INR 26,200-26,400/MT (USD 365-368), ex- Mumbai, up INR 500-600/MT as against last week's report. Prices in the northern region moved down by INR 300-400/MT W-o-W while remained supported in the Central and Eastern regions.
Chennai based importers observed minor trades of West African HMS at USD 327-328/MT,CFR while local HMS (80:20) prices remained almost stable at around INR 26,800/MT, ex- Chennai.
Ship breaking market silent amid volatile sentiments - The volatility in fundamentals has kept the local temperament in check and offerings conservative, leading to no sale this week. Ship plate prices remained hovering by INR 200-400/MT and assessed at INR 31,200-31,400/MT, ex-Alang for 16 mm slightly down INR 300-500/MT W-o-W. Ship cutting prices assessed at USD 420-425/LDT for general dry bulk cargo; at USD 440-445/LDT for containers and at USD 430-435/LDT for tankers on CNF India basis respectively.
