Issue 27, 2024 - This week's editorial: Global scrap prices firm

Indian demand for imported scrap remained sluggish last week, with no major bookings reported. Prices for EU/UK-origin shredded scrap stayed stable at $410-415/tonne, while West Africa-origin HMS 80:20 scrap held at $385-390/t cfr Nhava Sheva.

The onset of the monsoon season across the country has dampened steel demand from end-users in infrastructure and construction, further reducing the need for imported scrap.

Additionally, traders' sufficient stock levels and competitive pricing of domestic scrap and direct reduced iron have also lessened demand for imported scrap.

In the domestic market, HMS scrap prices increased by INR 300-600/t ($3-7), and DRI prices rose by INR 200-400/t on-week due to minor restocking by retailers.

Meanwhile in Turkey, scrap prices remain firm after reaching $390/tonne cfr for US-origin HMS 1&2 80:20 in the latest deals. Some market participants expect demand to strengthen in the coming week, while others think Turkish mills may delay purchases for longer. Some European deals were heard being concluded at $384-385/t cfr Turkey last week.

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