Posted on 26 Nov 2021
Limited demand for billet and rebar have reduced bookings of imported scrap by Indian buyers. Despite low-priced offers, mills are seen staying away from booking large quantities, various market sources tell Kallanish.
Offers for United Arab Emirates-origin HMS 1 fell by $5-10/tonne to $470-475/t cfr Nhava Sheva and northern India. UAE-origin HMS 1&2 80:20 offers dropped further, by $10/t to $450-460/t cfr Nhava Sheva. Offers for West Africa-origin HMS 1&2 are hovering at $460-465/t cfr Mundra and Nhava Sheva, and at $465-470/t cfr Goa and Chennai.
A Mumbai-based mill booked 1,000 tonnes of West African-origin HMS 1&2 80:20 at $465/t cfr Nhava Sheva on Tuesday. Chennai-based mills are heard booking a few containers of West African-origin HMS 1&2 80:20 at $470/t cfr levels. Gujarat mills are reported booking a few containers of UAE-origin HMS 1&2 80:20 at $450/t cfr Gujarat.
“Mumbai and Jalna’s scrap demand are weak; we are seeing low imports and more feeding from the local market,” says a west India-based trader. “The market is expected to surge in the coming week as offers to Turkey have increased.”
UK- and US-origin shredded offers remain stable at $550/t cfr Nhava Sheva; however, bids were noted at $540/t cfr Nhava Sheva. Offers for Europe-origin turnings scrap and bundles are hovering at $425/t and $395/t, respectively. No deals were heard for shredded scrap this week.
“The market is weak … finished steel demand is seen plunging this week,” says a northern India-based trader. “We offered UAE-origin HMS 1&2 80:20 at as low as $450/t, but then couldn’t attract a deal.”
Domestic melting scrap offers have also plunged owing to downward sentiment. Offers are hovering at $458-460/t ex-North India, $540-545/t ex-Central India, $450-455/t ex-West India, and $510-515/t ex-East India.
“West Indian mills have booked few containers from UAE at $450/t, but the overall market is down,” says a Gujarat-based mill’s senior purchaser. When asked about the shift in purchase priority to the local market, the purchaser says: “The local market is not sufficient to cater for the complete demand. Mills have reduced production owing to low demand.”
Meanwhile, scrap offers [landed] in Pakistan have recovered owing to an increase in input costs of electricity and petrol. Shredded scrap prices in Pakistan are at $555/t cfr Port Qasim and UAE-origin HMS 1&2 80:20 is at $520-525/t cfr Port Qasim. A deal was heard on Tuesday for 500t each of UAE-origin HMS 1&2 80:20 at $520/t cfr Port Karachi and $522/t cfr Port Qasim. Offers for any-origin containerised shredded in Bangladesh are meanwhile heard at $580-585/t cfr Chittagong.
“Although finished product demand is low in Pakistan, due to the rise in input cost, offers for local and imported scrap increased,” says a Pakistan-based trader. “Buyers have stopped further bookings and anticipate a decline in offers.”
Source:Kallanish
