Import scrap buying in India has remained subdued amid reports that arrivals at ports of previously booked tonnages have been delayed and that Indian secondary mills are unwilling to extend commitments, blocking funds, SteelOrbis learned from trade and industry circles on Wednesday, January 24.
Ex-Europe containerized shredded scrap prices are reported at $415-425/mt CFR, adjusting down from $420-425/mt CFR last week. The prices are fully nominal, according to sources, and are reflecting more the resistance of importers to any uptrend and their unwillingness to purchase at all, rather than real offers.
The reference prices for HMS (80:20) scrap in containers have softened to $390-400/mt CFR, down by $5-10/mt over the past week, while some market sources are assessing the current market at as low as $380/mt CFR.
According to the sources, a Gujarat-based trading firm is heard to have booked a bulk cargo at $401/mt CFR Kandla port in the west, which consists mainly of HMS, but this could be confirmed by the time of publication.
“We are not seeking active offers as trade channels are well stocked. Secondary mills too are unwilling to restock raw materials unless finished steel prices, particularly rebar, improve,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Also, there is a delay in arrivals in tonnages booked earlier, as most shipping lines are taking extended routes from Europe to the Indian west coast to avoid the Red Sea. These tonnages are now expected to arrive at ports around mid-February. Hence, buyers are not willing to conclude new deals, to avoid a surplus situation once old contracted materials land at ports,” he said.
Trade channels estimate that about 60,000-80,000 mt of mixed scrap shipments have been delayed from their scheduled arrivals this month.