India: Imported scrap trades remain sluggish on bearish market sentiments
Imported scrap market in India has observed limited trades since almost one and a half months. This week too market remained sluggish due to bearish sentiments in secondary steel segment. However, in a major boost to the industry, govt. has removed 2.5% import duty on ferrous scrap in the Union Budget FY'21-22.
SteelMint's assessment for containerised shredded stands at $403/t CFR Nhava Sheva level, registering a further drop of $20/t w-o-w. Notably, the prices have come down by around $70 in last one month.
"Imported scrap trades in India is slow despite duty cut due to limited sales in secondary finished segment," a reliable source has shared to SteelMint. Rebar IF grade SteelMint's benchmark assessment has come down to INR 42,000 /t exy Mumbai, down by INR 700/t w-o-w.
"Market is very dull and currently imported scrap has no buyer but surely people will come back soon. No fresh deals for shredded for Feb-Mar'21 loading is being done, except high-seas cargo which are being sold"?a major trader has shared.
Recent trades and offers-
- A steel mill has booked containerised 4,000 t of Turnings at $360/t CFR Vizag earlier this week
- Fresh offers for UK/EU origin shredded is being cited at $405/t level, however, no fresh deals were reported at these levels
- HMS 1&2 (mix, 80:20) from Dubai is being quoted at $340-350/t CFR level, whereas buyers are asking at $330-335/t level.
"Currently wait- and- watch situation continues to prevail due to an unstable market. This week we have not booked anything", shared a Western India based steelmaker.
Domestic scrap price falls further- Melting scrap prices have further dipped across the major markets as buyers are cautiously placing their bids due to restrained semi-finished supply movement along with dull finished steel demand. SteelMint's assessment for HMS in Western India stands at INR 25,900/t DAP Mumbai (down by INR 300/t w-o-w), and at INR 25,800/t DAP Jalna level (down by INR 700/t w-o-w).
Outlook- Few market insiders expect that prices would go up slightly in the second half of the month after Chinese holidays.