Offers for imported scrap in India have continued to slowly move up with sellers facing tight allocations, but deals have remained very limited amid buyers’ submitting low bids, sufficient stocks, and expectations of the current rise not being sustained, SteelOrbis learned from trade and industry circles on Wednesday, December 6.
Ex-Europe containerized shredded scrap offers are reported in the range of $417-420/mt CFR Nhava Sheva port in the west, but the tradable level is still not above last week’s $415/mt CFR. No deals for shredded scrap have been reported over the past week, with a few bids coming at $410/mt CFR.
Offers for ex-Europe HMS (80:20) scrap in containers are up marginally to $395-400/mt CFR, compared to $392-398/mt CFR a week ago.
According to the sources, a trade was reported for 1,000 mt of HMS scrap from the UK at $398/mt CFR Nhava Sheva. However, the sources said that select buyers can bid at around $400/mt CFR if they need to restock.
“There is not much activity in import trades. Secondary mills are facing a very weak finished steel market and are planning production cuts, thereby reducing raw material demand,” a Mumbai-based ferrous and non-ferrous trader said.
“Also, even though sellers have been steadily pushing up offers banking on lower availability ahead of the holidays this month, local buyers are submitting very low bids. They don’t have compulsions to restock and at the same time feel a price correction round the corner as demand has not been strong enough to support the current rise seen in the global markets,” he said.