Import scrap prices in India have remained stable amid a slight improvement in buying interest against the backdrop of the tightening of domestic supplies and a few secondary mills reporting a shortage of raw material although trade volumes are still on the lower side, SteelOrbis learned from trade and industry circles on Wednesday, May 29.
Ex-UK and ex-Europe containerized shredded scrap prices have remained unchanged at $415-420/mt CFR Nhava Sheva port in the west, with deals mainly at the lower end of the range. The tradable level for ex-UK HMS (80:20) was also stable at $400-405/mt CFR, while a slightly lower price is available for ex-Africa scrap of the same grade.
According to sources, a Gujarat-based trading firm has reported a deal for 2,000 mt ex-UK shredded scrap at $415/mt CFR Kandla port and another 1,000 mt tonnage of ex-Europe HMS scrap at $400/mt CFR. Another deal was reported for 1,000 mt of ex-Mozambique HMS scrap at $395/mt CFR Mundra port in the west.
“Some secondary mills are reporting a sharp drawdown in raw material, requiring urgent restocking. But domestic availability is tight as supplies from northern region scrap trading hubs are low owing to road transportation challenges owing to election campaigns of political parties. Arrivals of some vessels at ports have also been delayed,” a Mumbai-based trader said.
“But import volume bookings are being kept on the lower side as secondary mills are cautious with the rebar market entering a correction phase and they do not want to restock scrap at higher prices. The dynamics of demand will change once election results are announced next week and a new and more definitive trend is likely to emerge after the Eid holidays next month,” he said.