Posted on 30 Jul 2021
Indian imported scrap prices have remained stable on-week. Offers are expected to come down as buyers are hesitant to book imported scrap owing to high offers and the upcoming monsoon-related slowdown.
UK-origin shredded scrap offers are hovering at $535-540/tonne cfr Nhava Sheva, while US shredded quotes are at $530-535/t cfr, a market source says. European shredded scrap offers came down this week to $565-570/t cfr Nhava Sheva and are expected to decline further.
“In the coming week we expect to see EU-origin shredded scrap at $540/t cfr Nhava Sheva,” says a western India-based trader. “It is a trend in the Indian steel industry to witness a downfall in raw material prices during monsoon as the market gets slow during the season.”
Kallanish assessed US- and Canada-origin shredded scrap at $550/t cfr port Qasim, Pakistan and $530/t cfr Bangladesh. Deals each of 2,000 tonnes for containerized US-Canada-origin shredded scrap were heard in each nation on Wednesday.
United Arab Emirates-origin HMS 1 scrap is offered at $475-480/t cfr Nhava Sheva and prices are reported higher in northern India, reaching $485-490/t. UAE-origin HMS 1&2 80:20 is offered at $465-470/t. West Africa-origin HMS 1&2 is at $450-455/t cfr Mundra and $460-465/t cfr Goa respectively.
“Indian buyers are hesitant to buy at current offers and expecting the offers to come down,” says a northern India-based trader. “Buyers are already asking $40-50/t lower than what we offer, as the government’s vigilance against a few traders filing fake goods and service tax bills has restricted the supply chain in north India.”
EU-origin turning scrap is being traded at $440-445/t cfr western India and at $455-460/t in northern India.
Despite a transportation strike at India’s only shipbreaking yard at Alang port (see Kallanish passim), the market is witnessing a rise in ferrous scrap offers from shipbreaking. This week, ship scrap from containers is reported at $600/light displacement tonne (ldt), up by $30/ldt on-week. Scrap from dry bulk and tankers is reported at $555/ldt and $565/ldt respectively.
“Scrap from containers is always traded high, as we see zero to negligible weight loss, and recovers a good quantity of machinery and other spares scrap. The thickness of steel plate adds high value to the offers,” says an Alang-based trader. “The last container was sold 2 months back at $580/ldt in Alang and currently there are two containers ready to demolish in the yard, which will be sold next week at net $600/ldt.”
Source:Kallanish
