Import scrap prices have declined in India, but not sufficiently to trigger any trade activity, with buyers staying on the sidelines, either expecting a further fall or unwilling to restock due to year-end considerations and the prolonged weakness in finished steel prices and demand, SteelOrbis learned from trade and industry circle on Wednesday, February 14.
Ex-Europe containerized shredded scrap offers have been reported in the range of $413-415/mt CFR Nhava Sheva port in the west, compared to $415-420/mt CFR a week ago, while tradable levels from the buyers’ point of view are still not above $400-405/mt CFR. Ex-UK origin HMS (80:20) scrap has been quoted at $390-392/mt CFR, against $390-395/mt CFR a week ago.
The sources said that some West Africa origin HMS scrap has been available lower in the range of $380-385/mt CFR, but no deals have been confirmed in the market at these levels either.
“Imports continue to remain unviable even at lower levels for secondary mills for multiple reasons. Sellers are attempting to support prices in a falling market and are refraining from aggressive adjustments, while buyers are expecting further falls,” a Mumbai-based ferrous and non-ferrous trader said.
“At the buyers’ end, there is very tight liquidity and a high cost of import funding or working capital, making high-cost imports unviable. At the same time, most secondary mills are focussing on year-end liquidation of stocks at discounts, precluding any option of passing on higher input costs to buyers, particularly of long products,” he said.