Import scrap prices for India have continued to seek higher level with sellers pushing up offers citing tight supplies, but buyers have stayed away from committing deals in view of cyclonic weather conditions impacting southern port operations and the uncertain trends in the construction grade steel market, SteelOrbis learned from trade and industry circles on Wednesday, December 13.
Ex-Europe containerized shredded scrap offers are in the range of $425-428/mt CFR, up from $418-420/mt CFR a week ago. But trading has been poor with buyers’ targeted levels assessed at not above $420/mt CFR. Offers for HMS (80:20) scrap of Europe origin are at $405-410/mt CFR, up by $10/mt, though ex-West Africa material can still be booked at $395-400/mt CFR.
“Imported scrap prices are too high and not acceptable to secondary mills. Sluggish market conditions for construction grade steel do not support such high raw material prices. Local sponge iron is a more viable option for mills,” a Mumbai-based scrap trader said.
“I have not made any import bookings since late October. It is better to wait for the post-holiday period when the expected increase in supplies can cool the market. At current prices mills have no advantage in using imported scrap and traders with inventories built at higher prices are burdened with high carrying costs,” he said.
According to an eastern region-based induction furnace operator, bids at even a $1-3/mt discount to offers could not be converted into deals as sellers have been unwilling to make any adjustments and also he indicated that he has had a tonnage held up at Chennai port in the south following disruptions to operations following the cyclone.