Indian import scrap prices declined with buyers showing little interest in new bookings against backdrop of slump in the local long products market and induction furnace operators mulling cuts in output to check inventory build-up, SteelOrbis learned from trade and industry circles on Wednesday, June 19.
Ex-Europe containerized shredded scrap price was down to $412-417/mt CFR Nhava Sheva port in the west compared to $420-425/mt CFR a week ago, while UK origin HMS (80:20) scrap was quoted at $391-396/mt CFR against $395-400/mt CFR a week ago.
According to the sources, despite the drop in offer levels, scattered bids were reported even lower in the range of $400-410/mt CFR for containerized shredded scrap versus $417-420/mt CFR a week ago, which were rejected by sellers leading to no confirmed trades reported in the market over the past week.
“There is too much nervousness in the long products market. Conditions are not suitable for secondary mills to restock imported materials as rebar prices face further downside risks by time scrap volumes arrive at ports,” a Mumbai based ferrous and non-ferrous scrap trader said.
“We do not think there will be much activity in the scrap market in the subcontinent. Globally scrap prices are poised for some stabilization. But the usual lean monsoon season and finished steel demand remaining weak in India, secondary mills will remain refraining of imported raw materials at higher prices,” he said.