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India: Imported scrap trade slows down on drop in semis prices

Amid declining domestic semi-finished steel prices and slow finished products sales, imported scrap buyers have slightly lowered inquiries towards the weekend after booki...

Melting Scrap
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22 Oct 2021, 19:44 IST
India: Imported scrap trade slows down on drop in semis prices

Amid declining domestic semi-finished steel prices and slow finished products sales, imported scrap buyers have slightly lowered inquiries towards the weekend after booking material actively at the beginning of the week.

Meanwhile, imported scrap prices remained at higher levels, while trades have slowed down, considering the price correction in the domestic market.

Recent offers and deals

  • Around 1,500 t of UK/EU-origin shredded scrap in containers was traded at Vizag at an equivalent price of $550/t CFR Nhava Sheva. Fresh offers for shredded are at $550-555/t levels, moving up slightly by $5/t w-o-w.

  • UK-origin HMS (80:20) offers are heard at $515-520/t CFR Nhava Sheva, up over $10/t w-o-w. Buyers were not interested in these offers.

  • UAE-origin HMS 1 is being quoted at $505-510/t CFR.

Additionally, container availability and increased freight rates are the major concerns globally, highlighted by industry participants.

Domestic scrap and sponge prices fall: Melting scrap prices sharply declined throughout the week, after continuous hikes. The main factors that support the fall in prices were a correction in semi-finished steel prices and weak buying inquires for finished steel products. However, the Jalna market witnessed slightly positive sentiments due to restrained supply. Meanwhile, in a few locations, prices remained flat due to usual day-to-day procurement, SteelMint notes.

SteelMint's assessment for HMS (80:20) was recorded at INR 37,700/t DAP Mumbai, down by INR 700/t, w-o-w, while prices for Jalna are at INR 38,200/t DAP, a decrease of INR 300/t, w-o-w.

Fall in billet prices, and persistent weak demand put pressure on sponge iron. As per SteelMint's assessment, prices of Raipur sponge P-DRI (FeM 80%) were slashed by INR 1,500/t w-o-w to INR 34,000/t exw.

IF route rebar prices correct downward: IF rebar prices remain under pressure on weak buying inquiries and spot transactions. Fe 500 grade rebar prices dropped INR 800/t, to INR 53,700/t exw Mumbai. Prices in the short term are expected to remain weak or fluctuate, varying across markets, depending on billet price movements.

 

22 Oct 2021, 19:44 IST

 

 

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