Indian imported scrap trades remain slow on bearish steel sentiments

Imported scrap offers to India have remained firm over a week, however trades have remained slow after decent bookings concluded last week. While global suppliers continue to hold offers firm, recent decline in sponge & billet prices seen this week have turned market sentiments bearish in India.

SteelMint's assessment for Shredded scrap in containers stands at $325/t CFR Nhava Sheva. Suppliers have quoted the offers at around $325-330/t CFR levels, while few trades were reported this week.

Confirmed trades-

• Chennai based steel mills booked 2,000 t of HMS from Europe in containers at $305/t CFR level.
  
  
• Few deals were also concluded for UK origin HMS 1&2 (80:20) at around $295-300/t CFR level in Ludhiana.
  
  

"Imported scrap trades have come down, due to falling margins on a hike in raw material costs and decline in billet & rebar offers " highlighted a trader with SteelMint.

Current Offers-

Domestic market overview - Domestic steel market remained dull sentiments in last couple of weeks. Sponge iron demand has slightly weakened in the Indian domestic market owing to a fall in production of furnaces due to shrinking margins.

• Domestic scrap prices in western India (Jalna) up by INR 500/t on tight availability over a week and currently stands at INR 24,300/t against INR 23,800/t reported last week.
  
  
• While domestic billet prices moved down by INR 600/t w-o-w and currently stands at INR 30,000/t DAP Jalna level.
  
  

Outlook - Few major buyers indicated that they may return to the market for imported scrap bookings next week. This may improve bookings next week.