The import scrap market in India has lapsed into uncertainty amid a lack of offers during the holidays in Europe, weak local finished steel prices, and the poor trading activity which will continue until buyers and sellers are able to discern a definitive trend, SteelOrbis learned from trade and industry circles on Wednesday, January 3.
Sources said that, even though the market remains quiet for both buyers and sellers, one offer for ex-Europe containerized shredded scrap was reported at $410/mt CFR, compared to levels of $418-420/mt CFR a week ago, but most in trade circles maintain that the offer price is unrealistic as, since no trade has been confirmed at such a price, it is largely “irrelevant to the market”.
According to sources, ex-Europe HMS (80:20) scrap offers have been maintained at $390-395/mt CFR, down by $5/mt from early last week, and, while no deals were reported, a trade for East Africa origin HMS scrap totaling 2,000 mt has been reported in the market at $375/mt CFR Kandla port in the west.
“Buyers are uncertain over the impact of security in the Red Sea maritime route on freight rates for consignments from Europe. Current offers are not reflective of the recent increase in freight rates for Europe-India west coast shipments. Once business activity resumes after the holidays, offers are bound to reflect the increase in freight rates and secondary mills being cautious over imports,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“There is sufficient local material for trade, and the soft price of sponge iron will keep secondary mills away for high-priced imports,” he said.