India: Imported scrap prices up on global cues, deals concluded
Imported scrap offers to India continue to rise and market sentiments are currently bullish due to good demand and rising prices in Turkey. Sponge iron prices have risen ...
Imported scrap offers to India continue to rise and market sentiments are currently bullish due to good demand and rising prices in Turkey. Sponge iron prices have risen on the back of steep coal prices , but steelmakers remained active in restocking scrap from overseas market, sources told SteelMint.
- Shredded from UK/EU is being offered at $545-550/t CFR Nhava Sheva levels, moving up considerably by $10-20/t w-o-w. However, the market is not interested in booking any container at these levels.
- Dubai-origin HMS 1&2 (80:20) is now available at $490-500/t levels.Some deals were concluded at these levels, it is heard. Also, some decent quantity of HMS 1 from the same origin has been booked at $500-510/t CFR basis. Deals of 5,000t in containers was heard concluded a couple of days back.
- UK-origin HMS 1&2 (80:20) have been booked at $505/t CFR levels. However, many buyers found these levels not feasible, due to increasing freight rates. Hence, they shifted to the other prospective sources like West Africa.
- A decent deal was concluded for HMS 1&2 (80:20) from West Africa at $500/t CFR basis.
Furthermore, container availability is still an issue in major supplying countries like UK/EU, SteelMint learnt from market sources.
Domestic market overview
Domestic scrap prices rise sharply w-o-w: Melting scrap prices today saw fluctuations across markets, SteelMint noted. While prices remained positive in western, central and eastern regions on supportive steel sentiments, the same saw slight corrections in the northern region on account of adequate supply in the market. Prices in the near term may remain volatile amid decrease in semi-finished steel prices.
SteelMint's assessment for HMS was recorded at INR 38,100/t DAP Mumbai, up by INR 1,500/t, w-o-w, while prices for Jalna are at INR 37,800/t DAP, up by INR 1,500/t, w-o-w.
Rising billet offers, increasing coal prices boost prices. Buyers were less interested in the floated offers. As per SteelMint's assessment, prices of Raipur sponge P-DRI (FeM 80%) were raised by INR 1,800/t w-o-w to INR 35,100/t exw.
IF re-bar surges w-o-w: Strong raw materials prices and semi-finished steel prices kept prices high owing to adequate future orders. However, manufacturers are under pressure to keep prices stable in nearterm. As per SteelMint's assessment, induction furnace (IF, Fe 500) re-bar prices in Mumbai stand at INR 54,300/t exw, up by INR 3,800/t w-o-w.