Trading activity in India’s import scrap market has remained sluggish as the bid-offer gap still remains wide and buyers are unwilling to conclude trades amid weak local finished steel market, SteelOrbis learned from trade and industry circles on Wednesday, February 7.
Ex-Europe containerized shredded scrap offers are still in the range of $415-420/mt CFR Nhava Sheva port in the west and HMS (80:20) scrap is available at $390-395/mt CFR, compared to $395/mt CFR a week ago.
But buyers have been unwilling to commit trades above $400-405/mt CFR for shredded scrap and $380/mt CFR for bulk scrap, and hence no confirmed trades have been reported in the market.
“Local mills are not interested in sourcing imported raw material not only because of higher prices, but also because of the uncertainties surrounding arrivals of shipments which continue to be delayed by 10-30 days. Also, finished steel prices continue to decline and secondary mills are reducing plant capacity utilization levels, reducing raw material demand,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Imports are hence not financially viable. Mills are not willing to pay more than $400/mt [CFR for shredded] as any price higher than that cannot be passed on to buyers of finished steel,” he said.
An eastern India-based secondary mill operator said that sponge iron prices have softened by about INR 500/mt ($6/mt) since early January and availability has been sufficient, making it a preferred feedstock and hence the low interest in riskier imported scrap.