Import containerized scrap prices in India have remained stable over the past week, but no deals have been reported in the market, amid uninterested buyers and sufficient inventories and local supplies, SteelOrbis learned from trade and industry circles on Wednesday, November 22. Only one bulk booking from the US has been reported in the market.
Ex-Europe containerized shredded scrap prices are stable at $410-415/mt CFR and HMS (80:20) scrap at $390-395/mt CFR, but no deals have been done as sellers declined to adjust prices and tight global supplies indicated further headroom for offers.
The sources said that sufficient local supplies and new arrivals at ports have provided an opportunity to buyers to avoid deals at current high prices and amid risks from the local currency touching yet another historical low against the US dollar in the past week.
Though not confirmed, a western India-based mill is heard to have concluded a bulk deal of 36,000 mt of ex-US shredded scrap, including 6,000 mt of bonus grade with an average price at $427/mt CFR Kandla port for January delivery.
“Secondary mills, which are operating at lower levels, have sufficient raw materials for the coming months. Considering low plant utilization levels and soft prices of construction grade steel, they do not need to restock aggressively at current higher prices. Mills can wait until January to resume raw material bookings,” a Mumbai-based trader said.
“But our assessment is the expectations of a price correction ahead may be belied. There is a lot of demand for January shipment in key importing regions. The rise in other raw material prices like iron ore and coking coal will have a positive contagion impact across raw material markets including scrap. Hence, Indian mills will inevitably face high prices even after deferring deals until January,” he said.