Indian Scrap Market Is Stable And Expected To Rise

Indian imported scrap prices have remained stable on-week on the back of limited buying interest from the mills.

UK-origin and US-origin shredded scrap offers have firmed at $525-530/tonne CFR Nhava Sheva. European shredded scrap offers clocked at $535-540/t, but buyers are hesitant to pay high for EU shredded.

"The market is rising, buyers are becoming active now to book long voyage shipments, especially from Latin America region, including Brazil, and Chile," says a West India-based trader. "Market is going to rise post-monsoon in September and continue to rise till March-April of next year. It is expected that scrap along with iron ore offers is going to increase in the coming month."

They assessed EU-origin shredded scrap at $530-535/t, reported further high till $540/t cfr Port Qasim, Pakistan. Several Pakistani mills have booked their orders on Wednesday. No deals were reported from Bangladesh owing to its nationwide lockdown, but few mills tried to negotiate UK/EU origin shredded with an asking price of$540-545/t.

"Owing to higher recovery and cleaner material, Bangladeshi mills prefer UK/EU origin shredded scrap over US origin," observes an Indian trader.

United Arab Emirates-origin HMS 1scrap is offered at $485-490/t CFRr Nhava Sheva. UAE-origin HMS 1&2 80:20remained stable on-week basis and is offered at $480-485/t. West Africa-origin HMS 1&2 assessed at $465-470/t CFR Mundra and $470-475/t CFR Goarespectively. EU-origin HMS 1&2 80:20 is offered at $480-485/t.

"Rebar sales have dipped amid monsoon but are expected to rise in 15-20 days and currently, raw materials including sponge iron and scraps are short in supply. We foresee a surge in scrap and other raw material prices in the coming months, when the demand for rebar will increase," says a North India-based trader.

EU-origin turning scrap is being traded at $430-435/t CFR Nhava Sheva. Domestic melting scrap offers in India are hovering at $480-485/t ex-North India, $510-515/t ex-Central India,$440-445/t ex-South India, $460-465/t ex-West India and $485-490/t ex-EastIndia.

This week in India, ship scrap from containers is reported at $580/light displacement tonne (ldt). Scrap from dry bulkers and tankers is reported at $560/ldt and $570/ldt respectively.

"There is a shortage of tonnage in the market due to strong cargo movements and high freight; also, whatever is available is going to Pakistan and Bangladesh due to better prices," says an Alang-based trader. "However, by the end of July the local prices are increasing and buyers are ready to offer better prices, and two container srecently sold in Alang at $620 plus"

Short comments: Scrap material rise, is bound to affect other steel.  Before the next wave of material prices rise, you can get a suitable price by purchasing Drum Closure.