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India: Imported scrap buying slows down as offers climb by $30 w-o-w

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Melting Scrap

BigMint Bureau

1006 Reads

11 Dec 2020, 20:10 IST

India: Imported scrap buying slows down as offers climb by $30 w-o-w

Following the global price uptrend, Indian imported scrap offers too crossed $400 CFR mark this week. After witnessing some bookings towards middle of this week, buying inquiries for imported scrap fell on sharp hike in offers.

On the other hand, increased freight charges on low container availability in various supplying countries kept the offers at higher level. SteelMint's assessment for Shredded scrap in containers of UK/EU origin stands at $410/t CFR Nhava Sheva, up significantly by $25/t w-o-w. Notably, imported scrap prices have moved up significantly over $70-80 in last one month.

"No trades of imported scrap were heard at increased offers. This is primarily due to the price gap between domestic scrap and the landed cost of imports. The landed cost of imports is costlier by roughly around INR 3,000/t than domestic offers", shared a global scrap trader with SteelMint.

Recent deals and offers in containers-

A major Indian steel mill has booked containerised scrap early this week, comprising of MS shredded in slots of 3,000 t at $400/t CFR Mundra and 2,000 t at $408/t CFR Vizag basis and 2,000 t of busheling bundle at $420/t CFR Vizag level.
Towards the beginning of the week, Chennai based steel mill has booked shredded at $400/t, Turnings at $350/t, and HMS 1&2 (80:20) at $380/t CFR Chennai basis, however, the quantity was not confirmed at the time of publishing the report.
Fresh offers for UK/Europe origin shredded is being quoted at $415-420/t CFR Nhava Sheva level.
UK/EU origin HMS offers are at $390/t CFR Nhava Sheva level.
Dubai origin HMS 1&2 (80:20) is being offered at $385/t CFR.

Indian domestic scrap market overview - Melting scrap prices have strengthened by INR 300-900/t w-o-w over healthy transactions in semi-finished along with improve buying inquiries in finished steel. SteelMint assessment for HMS in western India stands at INR 27,600/t DAP Jalna and INR 27,900/t DAP Chennai level. Domestic scrap prices may remain supported in the near term, sources have reported SteelMint.

SteelMint's benchmark price assessment for sponge iron (CDRI) increased by INR 200-300/t (d-o-d) in Raipur (central India) and stood at INR 25,900/t exw Raipur. However, on weekly basis, prices have come down by INR 200/t.

Prices up in other South Asian markets- Imported scrap prices in Pakistan surged further in recent trades. Around 3,000 t of shredded has been sold at $407-410/t CFR Qasim level. SteelMint's assessment for imported shredded 211 scrap in containers from UK/Europe stands at $408/t CFR Qasim, moving up by $8/t as against the beginning of the week.