Import scrap prices in India have softened slightly as buying activity has slackened with secondary mills having either completed this round of restocking or resorting to need-based bookings of smaller tonnages, SteelOrbis had learned from trade and industry circles.
Ex-Europe containerized shredded scrap prices are reported in the range of $422-425/mt CFR Nava Sheva and Kandla port in the west, compared to the reference prices of $425-428/mt CFR a week ago, while ex-West Africa bulk scrap is quoted at $400-405/mt CFR, versus $400-408/mt CFR last week.
According to sources, since mills have almost completed restocking, buyers have not been responding to offers at higher levels of over $425/mt CFR, and only stray deals have been concluded at slightly lower levels.
A Gujarat-based ferrous scrap trader cum secondary mill operator concluded a trade for 2,000 mt ex-Europe containerized shredded scrap at $422/mt CFR Kandla port, while also ex-UK shredded scrap is heard to have been sold at $425/mt CFR Nava Sheva.
“Considering that inventories are at comfortable levels after recent aggressive restocking, buyers are willing to conclude deals only at affordable prices. Some small-tonnage imports are being done by mills, which are facing challenges in sourcing material from the northern Indian scrap trade hub of Mandi Govindgarh,” a Mumbai-based trader said.
“Import prices can be expected to remain range-bound, balancing out moderate buying from Indian mills at one end and strong buying in the west. The situation may change if supplies from Mandi Govindgarh worsen,” he said, referring to scrap traders in the local market facing tax evasion investigations, and so they could reduce business operations in the coming weeks.