Import scrap prices in India have increased despite the lack of buying and sufficient local availability of cheaper scrap and sponge iron, coupled with low demand for raw materials, with secondary mills lowering plant capacity utilization amid excess supplies of rebar in the market, SteelOrbis learned from trade and industry circles on Wednesday, January 10.
Ex-Europe containerized shredded scrap prices are in the range of $415-420/mt CFR Nhava Sheva port, compared to $410/mt CFR a week ago. Offers for HMS (80:20) scrap are at $398-405/mt CFR against $395-400/mt CFR a week ago, but no deals were confirmed in the market.
“The market is extremely sluggish in the case of imports. But we still expect import prices to harden further owing to rising freight rates. Offers for ex-Europe shredded scrap in short-term price targets will be around $430-435/mt CFR in our assessment,” a Mumbai-based trader said.
“But we do not think the secondary market will depend on imported raw material considering the fundamental weakness of finished steel prices. Raw material demand overall will remain depressed as secondary mills are cautiously lowering plant utilization levels as the rebar market enters into an oversupply zone,” he said.
According to an induction furnace operator, sponge iron prices have moved down by an average of INR 400/mt ($5/mt) over the past week and buyers have preferred cheaper alternatives to high-priced scrap imports with uncertain delivery timelines.