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Scrap import market declines in India, soaring in Pakistan


Date:

2023-04-28

Limited demand for billets and rebar has led to a drop in demand for imported scrap from Indian buyers. It was learned that despite the low offer, steel mills were still reluctant to place large orders.

Limited demand for billets and rebar has led to a drop in demand for imported scrap from Indian buyers. It was learned that despite the low offer, steel mills were still reluctant to place large orders.

HMS 1 scrap originating in UAE is quoted down US $5- US $10 / mt to US $470- US $475 / mt cfr Nawasivar and North India. HMS 1&2 80:20 scrap originating in the UAE is quoted a further US $10 / mt to US $450-460 / mt cfr Nawasivar. HMS1&2 scrap originating in West Africa is quoted at US $460-465 / mt cfr Mundra and Nawasiva and US $465-470 / mt cfr Goa and Chennai.

A Mumbai steel mill on Tuesday ordered 1,000 tonnes of HMS 1&2 80:20 scrap of West African origin at $465 / tonne cfr Nawasiva. Mills in Chennai are known to have booked several containers of West African origin HMS 1&2 80:20 scrap at a price of $470 / mt cfr. Steel mills in Gujarat have booked several containers of UAE origin HMS 1&2 80:20 scrap at a price of $450 / t cfr Gujarat.

"Scrap demand is weak in Mumbai and Jalna; We are seeing lower imports and more supply in the local market, "said a western Indian trader. "The market is expected to rise sharply in the coming week due to increased offers for Turkey."

Scrap scrap originating in UK and US remains stable at US $550 / mt cfr Nawasivar, but counter-offer at US $540 / mt cfr Nawasivar. Turning scrap and baling scrap originating in Europe are quoted at $425 and $395 per ton, respectively. No scrap trade heard this week.

"The market is weak... Finished steel demand has plummeted this week, "said a trader in northern India. "We were offering as low as $450 / tonne for HMS 1&2 80:20 scrap originating in the UAE, but could not get a deal done."

Prices for smelting scrap in India have also fallen sharply as a result of falling import markets. Prices are hovering around $458-460 / mt (northern India), $540-545 / MT (central India), $450-455 / MT (western India) and $510-515 / mt (eastern India).

"Mills in western India have booked several containers of scrap from the UAE at $450 a tonne, but the overall market is down," said a senior purchasing officer at a steel mill in Gujarat. Referring to the shift in focus to the local market, the procurement officer said: "The local market is not enough to meet all the needs. Steel mills have cut production because of low demand."

At the same time, prices for scrap steel in Pakistan have rebounded because of higher input costs for electricity and gasoline. Scrap scrap from Pakistan is priced at $555 / mt cfr Port Qasim and HMS 1&2 80:20 scrap from UAE is priced at $520-525 / mt cfr Port Qasim. On Tuesday, HMS 1&2 80:20 scrap, which originated in the UAE, traded at US $520 / mt cfr Karachi and US $522 / mt cfr Qasim for 500 mt each. Meanwhile, in Bangladesh, containers of scrap steel with unlimited origin are quoted at $580-585 / mt cfr Chittagong.

"Despite the low demand for finished steel in Pakistan, local and imported scrap quotes have increased due to higher input costs," said a Pakistani trader. "Buyers have stopped booking and prices are expected to drop.

Key Words:

Limited demand