Indian imported scrap prices drop in recent bookings

Imported scrap prices to India have moved down by $5-10/t this week, following the global trend. Few imported scrap bookings in containers were concluded early this week by both western & southern India based steel mills. However, the sentiments softened towards the weekend.

SteelMint's assessment for Shredded scrap in containers of UK origin is at $318/t CFR Nhava Sheva, down by $7/t w-o-w. Suppliers' offers stand at around $315-322/t CFR levels. The continued absence of Turkish mills from the global scrap market has turned sentiments bearish, which has led to a decline in prices in South Asian countries.

Confirmed trades-

• Major Indian stainless steelmaker has booked around 7,000 t of imported scrap in containers this week, SteelMint learned from its sources. 4,000 t of MS shredded has been booked at around $317/t CFR Mundra. While European origin 3,000 t of MS turning, has been booked at $293/t CFR Vizag basis.
  
  
• HMS 1&2 (80:20) deals in containers has been concluded at $290-295/t CFR Mundra.
  
  
• In another deal concluded for 3,000 t of EU origin HMS at $310/t CFR Chennai basis.
  
  
• West African origin cast iron is being traded at $305/t CFR Goa basis.
  
  

Current offers in containers-

UAE extends ferrous scrap export ban, less impact expected

The Ministry of Economy, UAE has issued a notice recently, stating that the temporary ban on steel scrap and waste paper exports has been extended for a period of another four months. Earlier UAE had issued a similar notice which was effective from 15 May'20, for a period of four months ending 15 Sep'20 in order to strengthen the country's domestic demand.

UAE has been a major source of imported HMS scrap for Pakistan and India, owing to its short transit time and a huge variety of grades and quality of material offered. Despite the UAE's scrap export ban, India has imported around 30,000 t during Jun'20. If sources are to believed, there have been HMS offers floating in both Pakistan and India from UAE origin. Thus market sources don't foresee a major impact of the ban extension.

Domestic market overview - Domestic scrap prices remained stable on a w-o-w basis with steelmakers are expecting demand to rise further in the near term. The current trade reference price for domestic scrap stands at INR 23,800/t DAP Jalna and INR 24,000/t Mumbai (DAP) level. Near-term prices may remain range bound, sources, shared with SteelMint.

Outlook -
Traders are of the opinion that Indian mills may turn active for imported scrap bookings next week, upon receiving clarity on global price trend after Turkish mills resume bookings.