Indian Importers Resume Bulk Scrap Bookings; 3 Vessels Reported
Mining News Pro - In recent conversations with market participants, SteelMint learned that Indian scrap importers have booked around 2-3 bulk scrap vessels in last 1-2 weeks.
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According to Mining News Pro - In recent conversations with market participants, SteelMint learned that Indian scrap importers have booked around 2-3 bulk scrap vessels in last 1-2 weeks. The demand for imported scrap has remained strong since August on lesser availability of inventories for Oct-Nov months.

This has pushed scrap importers to book bulk scrap cargoes mostly for end Oct-Nov deliveries. Along with this market has already observed decent volumes of scrap booked in containers amid supply tightness and further hike in global scrap prices.


According to reports, 2 bulk vessels comprising 30,000-35,000 MT mix grade scrap booked by major scrap importers based in Gujarat (Western India). These vessels sold by leading suppliers in UK comprising Shredded majorly along with HMS scrap.


Another deal for French origin mixed scrap cargo comprising of around 30,000 MT (Shredded, HMS, Bushelling and Bonus) was heard by a major trading company in India for which shipment is scheduled in mid- October. However the deal could not be confirmed at the time of publishing this report.


Although, for few buyers the panic on currency depreciation remains a matter of concern and the demand for finish steel yet to pick up in the global market.


The price assessment from UK and Europe based containerized Shredded stands stable at around USD 360/MT, CFR Nhava Sheva. While offers for USA origin containerized Shredded being quoted at around USD 365-370/MT, CFR levels.


According to sources, few trades for HMS 1 from Dubai and South Africa sold at around USD 350/MT, CFR. While offers for HMS 1&2 (80:20) heard in the range of USD 335-345/MT from UAE, UK and other origins depending on quality.


“Currently supplier side seems very strong in the global market, they are holding back to offer at low levels. Prices are moving up due to strong demand on restocking from major importers like Turkey and India. While Pakistan and Bangladesh are turning active. However, upcoming Muharram lull could keep Islamic nations silent after 10 days again and Indian currency depreciation may pull importers back for time being in the market” shared a source.


Indian domestic local scrap prices and Alang based ship cutting prices have observed upward corrections and they are likely to remain supported for upcoming days too.


Indian scrap imports up marginally in June – According to customs data, India imported 485,466 MT ferrous scrap in June’18, up marginally by 4% Y-o-Y against 466,382 MT scrap imports recorded in May’18. Imports in Jun’18 hit last 11 months’ high as earlier to this, highest scrap imports were recorded at 517,973 MT in Jul’17.


Indian bulk scrap imports remained Nil in August – According to vessel line up data maintained with SteelMint, India witnessed nil scrap imports in Aug`18 in bulk vessel as no vessel arrived at berth on any of the port. However, Indian bulk scrap imports were recorded at 126,618 MT in Jul’18 with 4 bulk vessels reported.


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