Import scrap prices in India have showed a mixed trend in the past week with some sellers attempting to push up prices, but buying interest has been minimal against the backdrop of the softening of finished steel prices and the holidays ahead, coupled with uncertain demand during the election months ahead, SteelOrbis learned from trade and industry circles on March 20.
Ex-Europe containerized shredded scrap prices have been reported in the range of $400-410/mt CFR Nhava Sheva port in the west, slightly up from $395-400/mt CFR a week ago. But with bids being largely below the $395/mt CFR mark, no deals have been confirmed in the market.
However, negotiations for HMS (80:20) scrap of UK origin have been at $360-365/mt CFR, down from $365-370/mt CFR a week ago, but still failing to attract buying, with secondary mills finding cheaper options of local scrap and sponge iron, the sources said.
“The import scrap market is still trying to find direction. Sellers are attempting to push up prices without much success amid the negative mood among buyers. We expect prices to remain under pressure and negligible trade activity in the subcontinent because of the Holi holidays and the extended weekend in India, and Ramadan and Eid in Pakistan and Bangladesh,” a Mumbai-based ferrous and non-ferrous trader said.
“In India, finished long product demand will taper over the next few months as construction activities slow down in the national election months of April-June. Buyers are therefore unlikely to move into the market despite the price declines,” he said.