Indian scrap import offers have risen significantly despite weak demand from mills. Offers from suppliers are not matching the expectations of buyers, owing to which mills have adopted a wait-and-watch mode.

UK-origin shredded scrap quotes are up by $10-15/tonne to $525-530/t cfr Nhava Sheva. US-origin shredded scrap offers grew marginally to $520-525/t and European shredded scrap offers are assessed at $525-530/t cfr.

Shredded scrap offers in Pakistan are stable at $535-540/t cfr Port Qasim. Kallanish hears a deal took place for 1,500 tonnes of UK-origin shredded at $538/t cfr Port Qasim on Tuesday. Post-lockdown, Bangladesh has bounced back with aggressive purchasing of scrap, with offers quoted at $550-555/t cfr Chittagong.

United Arab Emirates-origin HMS 1 scrap offers rose to $500-505/t cfr Nhava Sheva, while UAE-origin HMS 1&2 80:20 grew $5/t to $490-495/t cfr. West Africa-origin HMS 1&2 assessed at $470-475/t cfr Mundra and Nhava Sheva, and at $475-480/t cfr Goa. EU-origin and UK-origin HMS 1&2 80:20 rose $5/t to $480-485/t cfr Nhava Sheva.

A deal for Middle East-origin HMS 1&2 80:20 was heard at $475-480/t cfr Nhava Sheva.

“Imported scrap offers are rising on the back of improved Turkish sentiment,” says a western India-based trader. “Sellers have increased their offers on a hit-and-trial basis on the back of upcoming steel demand in the nation. As per the government’s weather forecasting, monsoon and the rainy season will go away in 10-15 days and all the construction and infrastructure projects will resume gradually.”

Although traders are bullish on offers, mills are in denial. Mills are asking for any-origin shredded at $505-510/t cfr, and UAE-origin HMS 1&2 80:20 at $460-470/t versus offers of $490-495/t.

“The market is down; no mill is interested in procuring imported scrap at such high levels. HMS 1&2, Africa-origin is comparatively viable than UK and EU material. Offers for UK-origin HMS 1&2 80:20 are rising and noted at around $490-495/t owing to high container costs of $70-80/t,” says a senior purchaser at a Gujrat-based mill.

“All the mills have stocked scrap for 20-25 days and are on wait and watch until prices come down,” he continues. “At present, it is not viable to purchase imported scrap as demand for finished steel is low. Prices might work out once the market picks up pace.”

EU-origin turning scrap rose to $430-435/t cfr Nhava Sheva. “Turning scrap offers are always low because of low purity [70%] as compared to shredded and HMS,” the purchaser concludes.

Domestic melting scrap offers in India are hovering at $495-500/t ex-North India, $495-500/t ex-Central India, $490-495/t ex-West India, and $480-485/t ex-East India.

This week in India, ship scrap from containers remained stable at $580/light displacement tonne (ldt). Scrap from dry bulkers and tankers is noted at $560/ldt and $570/ldt respectively.

“Shipbreakers are looking for the good tonnage and ready to pay the [high] price. Supply is limited in the market and big tonnages [of recycling] are happening without [adhering to] green recycling,” says an Alang-based trader.