Posted on 16 Oct 2023
Amid the prevailing sluggishness in Indian domestic steel demand, Indian mills are worried about global scrap prices going down on account of the war in Israel. The majority of importers feel global scrap prices will plunge as a direct result of a possible slash in Turkish rebar exports to Israel, which would impact Turkish scrap intake.
The war could also further appreciate the dollar versus the Indian rupee, making imported scrap more expensive, considering the slowness in Indian steel demand, sources tell Kallanish.
Offers for UK-, EU-, and US-origin shredded scrap dropped further to $410-415/tonne cfr Nhava Sheva and Mundra. A majority of transactions were made at $412-414/t cfr Mundra and Nhava Sheva on Wednesday and Thursday.
According to Punjab-based sources, offers for UK- and EU-origin shredded were noted at $410/t; however, no major bookings were made at these levels. Bids, meanwhile, were voiced at $400-405/t cfr.
A few Nhava Sheva-based buyers also inform of receiving UK- and EU-origin shredded offers at $407-408/t cfr, and a few bookings were made at these levels. Quotes for shredded from the same origins were heard at $410-415/t cfr Chennai on Thursday, but buyers preferred to wait and watch amid deteriorating sentiment.
Offers for UK-origin busheling were heard at $435/t cfr Mundra and quotes for UK-origin PNS were noted at $425-430/t cfr Nhava Sheva and Punjab. A booking for UK-origin PNS was made at $421/t cfr Punjab on Thursday.
Deals for hand-picked Venezuela-origin HMS 80:20 were concluded at $408-410/t cfr Mundra and Punjab. Canada-origin HMS 80:20 was booked at $410/t cfr Mundra on Thursday.
Around 1,000 tonnes of Brazil-origin HMS in 25-26t containers were booked at $400-405/t cfr Mundra on Thursday.
Yemen-origin HMS/bundles mix offers were voiced at $395/t cfr Mundra. Deals for UK-origin sheared were concluded at $385-390/t cfr.
Deals for West African-origin HMS 80:20 were concluded at $395-400/t cfr Mundra in 20-21t containers. West African-origin HMS 80:20 in 25-26t containers was booked at $405-407/t cfr Mundra.
Domestic billet offers plummeted to INR 45,500-45,600/t ($546.42) ex-Ahmedabad. Offers for Hospet-origin sponge iron pellet 78-80% Fe are noted at around INR 31,500-31,700/t dap Gandhi Dham, whereas 78-80% Fe lump offers were noted at INR 32,500-33,000/t dap Gandhi Dham.
“Billet prices have again come down following a brief uptick last week on the back of a cost push on raw materials,” says a source. “This has plunged confidence in the market, and as a result, buyers are preferring to wait now.”
“Also, there is still a severe cash liquidity issue in the market; finished steel sales have dropped, and the urgency for consecutive scrap bookings has thus diminished. Buyers are also worried about the Israel-Palestine [Hamas] war and confused about its impact on steel prices,” he adds.
Meanwhile, offers for Bahrain-origin DRI were heard at INR 32,500/t dap Gandhi Dham.
Source:Kallanish
