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India: Imported scrap trade improves on supportive steel sentiments

Imported scrap trade in HMS grade continued to remain active in India for yet another week supported by price hikes in domestic scrap and semi-finished steel. However, bo...

Melting Scrap
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28 Jan 2022, 19:15 IST
India: Imported scrap trade improves on supportive steel sentiments

Imported scrap trade in HMS grade continued to remain active in India for yet another week supported by price hikes in domestic scrap and semi-finished steel. However, bookings for shredded scrap continue to remain limited on bid-offer disparities and higher prices from neighbouring countries.

Recent offers and deals

  • A western India-based steel mill bought 2,000 tonnes (t) of UAE-origin HMS 1&2 (80:20) at $485-490/t CFR Kandla.

  • Deals in Dubai-origin HMS1 scrap were heard concluded at $490-495/t, CFR Nhava Sheva.

  • West Africa-origin HMS (80:20) scrap deals were heard at around $475/t CFR Nhava Sheva and $485/t CFR Chennai.

  • Deals in South Africa-origin HMS were heard at $505-510/t CFR Chennai.

  • Shredded from UK/EU is being offered at $545-550/t CFR levels. However, deals remained absent due to high offers.

"Few high seas shredded cargo material of UK-origin are available at $525-530/t CFR levels, due to less buying from the Pakistan market this week", said a prominent scrap trader.

Factors supporting imported scrap trade

  • Domestic scrap prices remain strong: Steel melting scrap prices witnessed an uptick due to rising semi-finished steel prices and positive steel market sentiments amid supply shortages at a few locations. Prices in the near term may remain positive, trade sources said. SteelMint's assessment for HMS (80:20) is at INR 37,900/t ($505/t) DAP Mumbai, up by INR 600/t w-o-w, while prices in Jalna were assessed at INR 38,000/t DAP ($506/t), up INR 400/t w-o-w.

  • Sponge iron prices rise: Prices rise further on strong demand and rising pellet, coal and billet prices. Sponge iron P-DRI (FeM 80%) prices rose by INR 1,500/t w-o-w to INR 34,500/t ($460/t) exw-Raipur.

  • Rebar prices up on improving demand: The market observed burgeoning trade volumes but buying inquiries have remained limited due to rising prices over the last few weeks. Domestic IF-route rebar prices increased further by INR 1,600/t to INR 54,600/t ($728/t) exw-Mumbai. Near-term prices are likely to increase over cost pressures, trade sources informed.

Outlook

Trade sources expect inquiries to remain supported and prices to firm up in the coming week.

 

28 Jan 2022, 19:15 IST

 

 

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