Indian scrap prices hardened on back of improved restocking by secondary mills after having effective large price increases across long products and fewer sellers active in the sub-continent, SteelOrbis learned from industry and trade circles on Thursday.
Ex-Europe containerized shredded scrap prices were reported in the range of $422-428 CFR Nhava Sheva port in the west compared to $410-416/mt CFR a week ago. However, mills remained more interested in HMS (80:20) scrap of UK origin, prices of which were reported at $390-398/mt CFR, compared to $385-388/mt CFR a week ago.
According to the sources, a Gujarat-based scrap trader confirmed a booking for 5,000 mt of ex-Europe shredded scrap at $426/mt CFR.
A western India based secondary reported a trade for 2,000 mt of ex-UK HMS scrap at $395/mt CFR Kandla port in the west, while an eastern based mill concluded a deal for $398/mt CFR Haldia port in the east, the sources said.
“There were few sellers actively submitting offers in the region, largely because of Eid holidays in Pakistan and Bangladesh. However, bolstered by the recent surge in long products prices and demand buoyancy, secondary mills were more active in restocking raw materials possibly ahead of planning increasing plant capacity utilisation levels if the current market uptrend sustained,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“As of now there is more buying interest for HMS scrap as mills are still cost-conscious. But we assess that scrap prices may have touched a bottom and hence buyers will eventually need to increase focus on shredded scrap. Of course, local rebar prices would need consolidation at higher levels,” he said.