Import scrap prices in India have softened significantly amid several distress sales, leading to a moderate revival in trade activity, with secondary mills more inclined to restock at lower price levels, having completed liquidation of long product inventories and seeing improved prices of rebar, SteelOrbis learned from trade and industry circles on Wednesday, March 6.
Ex-Europe containerized scrap prices have settled at $405-406/mt CFR in the latest deals, versus $412-415/mt CFR in offers last week. Moreover, new bids for shredded scrap have already hit $400/mt CFR.
Sources said that a Gujarat-based secondary mill cum trading house reported a trade for 2,000 mt of ex-Europe shredded scrap at $405/mt CFR Nhava Sheva. Another trade for 5,000 mt of ex-UK shredded scrap was reported at $406/mt CFR Nhava Sheva, the sources said.
Moreover, according to the sources, small trades for ex-Europe containerized scrap were heard at even as low as $400/mt CFR and, even though these trades were not confirmed, they indicate sellers’ aggressiveness in pushing deals amid the mounting negative sentiment on the supply side.
Ex-Europe HMS (80:20) scrap prices were submitted at $370-380/mt CFR, compared to $390-400/mt CFR a week ago. A deal for 500 mt of this grade scrap was done at $372/mt CFR Kandla port in the west, while the lowest deals for HMS were reported at $377-380/mt CFR last week.
“There are signs of panic among sellers. It is turning out to be a buyer’s market now. Indian mills are still cautious though, but are still in a better position to restock imported raw materials than last month, following the recovery of rebar prices. Currently, the import market is testing a bottom and the mood is still bearish among sellers. This is also prompting most buyers, not in urgent need to restock raw materials, to wait for a new bottom to emerge,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Our assessment is that import prices will need to decline by another $5-10/mt on CFR basis to be aligned with local prices and trigger higher interest in imports,” he said.