The Indian scrap market has shifted its preference to domestic scrap against imported material on comparatively cheap offers and high availability.

Domestic scrap offers are reported at INR 33,500/tonne ($458/t) ex-Mumbai against United Arab Emirates-origin HMS 1&2 80:20 at $470-475/t cfr Nhava Sheva, Mumbai. The additional $40-45/t cost of custom clearance and logistics charges lifts the landed cost of imported scrap to $510-515/t. The difference between offers has seen mills turn to the cheaper option.

Kallanish assessed UK-origin and US-origin shredded scrap offers down $5-10/t to $515-520/t cfr Nhava Sheva. European shredded scrap offers remain stable at $520/t.

EU-origin shredded scrap in Pakistan has risen by $3-5/t to $528-530/t cfr Port Qasim. A few Pakistani mills were reported booking 1,500t cargoes last week at $528/t cfr. Shredded scrap offers in Bangladesh meanwhile hiked to $545-550/t cfr, against asking prices of $535-540/t.

UAE-origin HMS 1 scrap is offered at $480-485/t cfr Nhava Sheva. UAE-origin HMS 1&2 80:20 dropped by $5/t on-week to $470-475/t. West Africa-origin HMS 1&2 assessed at $465-470/t cfr Mundra and $470-475/t cfr Goa respectively. EU-origin HMS 1&2 80:20 is offered at $470-475/t.

“Owing to low offers of domestic scrap, mills have reduced bookings of imported scrap. Upon that, iron ore and DRI offers have come down, which is ultimately affecting the overall imported scrap market from any origin,” says a west India-based trader.

EU-origin turning scrap remained stable at $425-430/t cfr Nhava Sheva. Domestic melting scrap offers in India are hovering at $480-485/t ex-North India, $500-505/t ex-Central India, $455-460/t ex-West India and $490-495/t ex-East India.

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

“Alang local market is good and INR-USD exchange rates are also coming down; we expect more vessels including under tow-units like rig and fso vessels to arrive in the port for beaching,” says an Alang-based trader. “Post-monsoon, usually market demand remains good till December; a lot of government’s pending work gets started and work orders are issued.”