Import scrap prices for India have softened slightly, but only rare deals have been reported in view of weak finished steel prices and sufficient supplies of sponge iron at lower prices in the local market, SteelOrbis learned from trade and industry circles on Wednesday, January 31.
Ex-Europe containerized shredded scrap offers are at $415-420/mt CFR, versus $415-425/mt CFR last week, but buyers have been voicing bids at $405-415/mt CFR at the highest. Offers for HMS (80:20) have been stable over the past week at around $395/mt CFR.
According to unconfirmed reports, a trade for an estimated tonnage of 2,000 mt of this grade of West Africa origin was heard at $395/mt CFR Kandla port in the west. But most other bids have been at $380-385/mt CFR for containerized HMS.
“Despite the fall in prices, limited bids were even lower, resulting in lacklustre trading conditions. With finished steel prices on a prolonged downturn, particularly construction grade steel, secondary mills are in no mood to restock imported raw material. Also, a lot of sponge iron is available locally as an alternative raw material,” a Mumbai-based ferrous and non-ferrous trader said.
“Also, in view of the elections in Pakistan in February and the lack of activity, many sellers are diverting volumes to India and Bangladesh, but workable prices are proving to be elusive and the bid-offer gap is too wide,” he said.