According to Mining News Pro -SteelMint learned from market participants that imported scrap offers to India have stabilized this week. Offers for UK and Europe origin Shredded scrap in containers remain in the range of USD 362-365/MT, CFR Nhava Sheva. However deals have remained on lower side amid buyers keeping away from bookings over currency depreciation and cheaper availability of local scrap. Few trades for Shredded scrap concluded at USD 370/MT, CFR Chennai.
As there are no strong reasons of sharp downward correction in the near future, scrap market is likely to adjust price levels for fresh round of bookings. Limited trades reported this week amid slow demand in the local finish steel market.
According to sources, offers from Dubai suppliers for HMS 1 have slightly inched up to USD 355-357/MT, CFR Nhava Shera levels on strong demand while South Africa offers remained hovering in the range of USD 350-355/MT, CFR. Offers for HMS 1&2 (80:20) assessed stable at USD 345-350/MT from UAE, UK and other origins.
Offers for West African HMS 1&2 in containers is learned around USD 340/MT, CFR Nhava Sheva and USD 345/MT, CFR Chennai. Notably, the price gap between HMS and Shredded scrap has narrowed down now.
“Bulk suppliers are now offering only December shipment as they claim to be sold out till November shipments, also very less offers are available for USA origin scrap amid tight supply at the moment.” shared a source close to the industry.
Indian domestic scrap prices exhibit mix trends - Indian local HMS scrap prices have shown mixed trends in major markets. Currently, HMS 1&2 (80:20) basic prices assessed at INR 27,800-28,000/MT (USD 383-386) stable on W-o-W, ex- Mumbai. Local HMS (80:20) prices assessed in the range of INR 27,200-27,600/MT, up INR 300/MT W-o-W, ex- Chennai. However, in other regions, like Kandla, Alang, Ahmedabad prices have weakened on weekly premises.
Most of the participants keep preferring local scrap over imported amid considerable availability of local scrap and sponge iron as well.
Ship breaking market observes rising competition – India has seen competing markets surge with Bangladesh firming again and Pakistan prices coming in line with Indian prices this week. Current assessment is stable at USD 425/LDT for general dry bulk cargo; at USD 445/LDT for containers and at USD 435/LDT for tankers on CNF India basis respectively. Local plate prices continue hovering amid shortage of tonnage starts to hit home and buyers turn active for tonnage with currency seemed to settle down at the new lows ever since.
