According to Mining News Pro -SteelMint learned from market participants that imported scrap market in India continues silence on depreciated currency (INR) against USD which remains cause of concern. Dull finish steel demand and falling semi finish steel prices kept scrap bookings limited again this week. Prices in recent deals seem to have come under pressure on declined demand temporarily but after local festival of Navratri demand may pick up again as not much scrap has been booked since past 2-3 weeks in India.
Currently, buying interest among participants remains USD 10-15/MT below current prevailing offers however, global scrap market sentiments remain still stable to strong without any pressure. USA and UK suppliers remained less offering on tight supply amid poor scrap inflows.
Offers for UK and USA origin Shredded scrap in containers heard stable at around USD 360/MT, CFR Nhava Sheva. According to sources, offers from Dubai suppliers for HMS 1 are being quoted in the range of USD 340-345/MT, CFR down USD 3-5/MT W-o-W. While South African scrap assessed stable around USD 355/MT, CFR Nhava Sheva with no fresh deal heard. Offers for HMS 1&2 (80:20) assessed at around USD 335-340/MT from UAE, UK and other origins.
India observes rise in bookings for West African HMS scrap - Indian importers based in coastal areas especially in Goa, Chennai and Kolkata have been witnessing rising import booking for West African scrap since past few months. Cheaper West African scrap is being used to mix with Sponge iron to fetch better margins by these steelmakers.
West African HMS 1&2 in containers traded this week at around USD 325-330/MT, CFR Chennai while offers assessed in the range of USD 330-335/MT, CFR Mundra and Nhava Sheva with limited buying interest.
Indian domestic scrap prices fall INR 500-700/MT W-o-W - Indian local HMS scrap prices dropped down by around INR 500-700/MT (USD 7-10) in the major markets. Currently, HMS 1&2 (80:20) basic prices assessed at INR 25,300-25,600/MT (USD 344-348) as against last weeks’ report at INR 25,900-26,100/MT ex- Mumbai. Likewise in other regions like Raipur, Kandla, Alang and Ahmedabad prices have weakened on weekly premises.
Chennai based importers observed few trades as local HMS (80:20) scrap prices still assessed at around of INR 26,500/MT (INR 400-500/MT down W-o-W), ex- Chennai.
The price gap between imported and domestic scrap remained widened making local scrap more preferred over less viable imported scrap.
Ship breaking market observes uncertainty - After hitting INR record low, Indian market turned uncertain. Local ship plate prices first rose up INR 500-700 during closing last week and have jumped down again by INR 700-800/MT, dropping overall INR 200-300/MT on W-o-W basis. Current prices assessed at INR 32,300/MT, ex-Alang for 16 mm plate.
Ship cutting prices corrected down slightly by USD 5/MT W-o-W pulling assessment at USD 430/LDT for general dry bulk cargo; at USD 450/LDT for containers and at USD 440/LDT for tankers on CNF India basis respectively. Surprisingly, A VLCC was sold of 16,897 LDT in Indian market despite dramatic sentiments at USD 430/LDT levels as both Pakistan and Bangladesh buyers were not keen in VLCC bookings.
