Indian buyers focus on bulk scrap imports at discount

Wednesday, 03 August 2022 16:36:31 (GMT+3)   |   Kolkata
       

Import offers for containerized scrap have remained stable in India during the past week, but large bulk bookings have been reported at discounts, with local buyers becoming active amid the tightening of domestic supplies and the rebound in the rebar market prompting secondary mills to restock raw materials ahead of the peak construction season, SteelOrbis learned from trade and industry circles on Wednesday, August 3.

An aggregate 48,0000 mt of HMS and shredded scrap from the UK was traded to India at the average price of $405/mt CFR Chennai, where the shredded price has been assessed at around $410/mt CFR.

Another trade was reported for 11,000 mt in an ex-US cargo of HMS and 22,000 mt of shredded and PNS by a southern India-based secondary mill at $409/mt CFR Chennai port in the south. The shredded scrap price in this deal is said to be at around $415/mt CFR Chennai or slightly above.

Previous bookings for mixed bulk cargoes of shredded, bonus grade and HMS I/II were signed at the average prices of $425-430/mt CFR India in late July, signalling that suppliers have had to lower prices by around $20/mt to attract customers.

Sources said that, in view of the high volatility of Pakistan’s local currency and bearish sentiments in that country, a lot of volumes were being diverted to sellers in India at discounts.

At the same time, containerized shredded scrap offers from Europe are still at $460/mt CFR and the tradable level has remained at the same as last week - $450-460/mt CFR. Ex-Europe offers of containerized HMS I/II scrap have been ranging at $440-445/mt CFR.

“Secondary mills and induction furnace operators are aggressively restocking ahead of the revival in construction activity and are taking confidence from the rebar market consolidation,” a Mumbai-based scrap trader-importer said.

“There is a tightening of local supplies of bulk scrap. At the same time, sponge iron prices have gained INR 2000/mt ($25/mt) over the past week to INR 35,700/mt ($452/mt). Against this, discounted imported scrap available in the range of $400-420/mt CFR is very competitive,” he said.


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