India’s export duty imposition has hit steel dynamics in India, sending domestic scrap, billet and rebar prices free-falling since Monday. Demand for imported scrap has consequently dried up, sources tell Kallanish.

          On Monday, a day after the new duties took effect, domestic scrap, billet and rebar plunged by a whopping INR 5,000/tonne ($64.44) on-week and continue to run on bearish sentiment.

          Offers for UK- and US-origin shredded scrap plummeted by a further $20-25/t on-week to $500-510/t cfr Nhava Sheva and Mundra; buyers, however, are heard bidding at $495-500/t cfr levels. No deals were heard concluding this week.

          “Shredded prices have dropped but still offers are not translating to deals,” says a tier-1 mil source. “Buyers are anticipating a further fall; however, sellers are seen resisting dropping the offers further.”

          Offers for United Arab Emirates-origin HMS1 plunged to $470-475/t cfr Nhava Sheva and Kandla, but actual bookings are being done at much lower prices. Punjab-based mills reportedly booked around 300-500 tonnes of UAE-origin HMS 1 on Thursday at $565/t cfr Kandla. Nhava Sheva-based mills reportedly booked around 1,000t at $468/t cfr Nhava Sheva. Gujarat-based mills are heard booking limited quantities at $465/t cfr Kandla. A Mumbai-based mill has bought HMS fabrication/blue-steel at $530-535/t cfr Nhava Sheva.

          UAE-origin HMS 1&2 80:20 offers are currently hovering at $455-460/t cfr Nhava Sheva and Kandla. A few deals were noted occurring at these levels on Thursday. West African-origin HMS 1&2 80:20 deal prices dropped further to $455/t cfr Mundra and Chennai.

          Indian domestic scrap offers plunged dramatically to $479/t ex-North India from last week’s $552/t. Likewise, Central India’s price plummeted to $512/t ex-Central India and $498/t ex-West India.

          “Overall sentiments are bearish in India. Right on Monday, prices started reacting to the government’s decision,” says a Gujarat-based mill source. “We witnessed a sharp fall of INR 5,000/t since then and the market doesn’t look like going up. The future looks bearish.”

--Source: SEAISI