Indian scrap buyers halted import bookings on Thursday owing to a drop in semi-finished steel and iron ore prices in the domestic market. This follows aggressive bookings by Indian buyers earlier this week, which led to a rise in imported scrap prices by $5/tonne. Price direction is now uncertain and will depend on how sentiment develops.
This week. offers for United Arab Emirates-origin HMS 1 rose by almost $5/t to $505-510/t cfr Nhava Sheva, Mundra, Kandla and Chennai. Indian buyers reportedly booked around 15,000-20,000 tonnes of HMS 1 this week. Gujarat-based mills booked around 4,000-5,000t at $505/t cfr Kandla, whereas multiple deals were reported at $505-510/t cfr Punjab.
Offers for UK- and US-origin shredded scrap were noted at $540-545/t cfr Nhava Sheva, while EU-origin shredded scrap offers were noted at $570/t cfr Nhava Sheva. A few deals of UK-origin shredded were reported at $545/t cfr Nhava Sheva. Some deals for UK-origin shredded were also heard at $550/t cfr Nhava Sheva but could not be confirmed before deadline.
“The market was good till yesterday, but suddenly sentiment dropped today,” a west India-based trader said on Thursday. “It is hard for us to predict the market direction now; everything depends on tomorrow … whether the prices will go up or down.”
UAE-origin HMS 1&2 80:20 offers were noted at $485-490/t cfr Nhava Sheva, Punjab and Mundra, and at $485-490/t cfr Kandla. Mills in Gujarat booked around 2,000t of UAE-origin HMS 1&2 at $485/t cfr Gujarat, whereas Mumbai-based mills booked 1,000t at $490/t cfr Nhava Sheva and Mundra.
“We saw a very good opening this week; mills aggressively bought UAE-origin HMS1 in Punjab. However, the market was down mainly because semi-finished steel prices went down today in major Indian markets,” a Punjab-based source commented on Thursday.
West African-origin HMS 1&2 80:20 offers were noted stable at $480-485/t cfr Nhava Sheva and $490-495/t cfr Chennai and Mundra. This week, Chennai-based mills have booked around 1,000t of West African-origin HMS 1&2 scrap at $490/t cfr Chennai.
Offers for Australia-origin turnings were noted at $470/t cfr Chennai and UK-origin LMS bundles at $445/t cfr Chennai.
Domestic scrap offers are at $535-540/t ex-North India, $555-560/t ex-Central India, $525-530/t ex-West India, and $550-555/t ex-East India.
Meanwhile, offers for ship scrap from containers were noted at $610/light displacement tonne (ldt). Scrap from dry bulkers and tankers is noted at $590/ldt and $600/ldt, respectively.