Import scrap prices have edged up with sellers quoting higher prices, citing higher freight rates and container shortages, while buying has remained muted though the outlook is still positive in view of the expected steel demand boost, SteelOrbis learned from trade and industry circles on Wednesday, June 12.
Ex-Europe and ex-UK containerized shredded scrap offer prices have moved up to $420-425/m CFR Nhava Sheva port in the west and even a few quotes were reported at as high at $430/mt CFR, compared to $415-420/mt CFR a week ago, but buyers have been deferring bookings. The highest bids are still reported at not above $420/mt CFR, versus previous deals for shredded at $417-418/mt CFR.
Meanwhile, HMS (80:20) scrap has continued to be quoted at $395-400/mt CFR.
According to sources, sellers have been quoting higher prices, citing freight rates which have moved up by $20-30/mt over the past two weeks and vessels facing extended voyage times to Indian west coast ports.
However, several in trade circles claimed that, despite the lack of trade activity and secondary mills deferring raw material bookings, the outlook remains positive and buying is expected to revive shortly amid reports of new projects being launched by the recently formed government, including 30 million housing units across Tier 1 and Tier 2 cities and railways construction projects.
These would have a multiplier impact on demand for long products and would provide positive support for secondary mills to step up outputs and raw material restocking.
“The market is silent but may not be so for long even if scrap prices have significant upside potential. The rise in long product demand from projects will come into play to provide support to secondary mills. The latter are awaiting demand consolidation and for prices to stabilize to confirm bookings,” a Mumbai-based trader said.