Import scrap prices in India have remained stable over the past week amid moderate trade activity, with buyers tending to defer deals and keeping a close watch on the emerging signs of weakness in the long products market, while scrap sellers have been unwilling to make adjustments to offers, SteelOrbis learned from trade and industry circles on Wednesday, May 15.
Ex-Europe containerized shredded scrap offers have been reported in the range of $425-430/mt CFR Nhava Sheva port, but only limited deals have been successful as lower bids heard at $415-420/mt CFR for shredded scrap were rejected by sellers, citing supplies being on the lower side.
According to sources, a western India-based induction furnace operator has confirmed a booking of 3,000 mt of ex-Europe containerized shredded scrap at $428/mt CFR, only slightly above deals done at $425-427/mt CFR a week earlier.
Offers for ex-Europe HMS (80:20) scrap are in the range of $405-410/mt CFR, also stable week on week. A scrap trader cum secondary steel mill operator has concluded a trade for 5,000 mt of HMS scrap at $405/mt CFR Kandla port in the west.
“The market is showing sluggishness largely because there is fresh nervousness in the local steel market. The sudden reversal of the uptrend in the long products market and the possibility of a correction setting in is prompting mills to defer raw material restocking. They will wait and watch for a couple of weeks for the next price trend to emerge,” a Mumbai-based trader said.
“We hear from sellers that the cost of scrap is rising in Europe and the US, and hence prices will continue to remain firm and hence low bids are not being considered in the sub-continent,” he said.