Import scrap prices in India have inched up riding on improved buying interest and the rush to book scrap in view of the tightening of local supplies and the anticipated increased demand for finished steel after the national elections are over in June, by which time import vessels would be due for arrival at ports, SteelOrbis learned from trade and industry circles on Wednesday, April 24.
Ex-Europe containerized shredded scrap offers have risen to $427-430/mt CFR Nhava Sheva port in the west compared to $425-430/mt CFR a week ago, while the tradable level would now be at $425-428/mt CFR Nava Sheva. Ex-West Africa and ex-UK HMS (80:20) scrap offers have increased to $400-408/mt CFR, versus $390-395/mt CFR last week, and the new level has been confirmed in a number of deals.
Moreover, the sources claimed that a number of ex-US bulk scrap cargoes were booked by Indian customers earlier this month. At least four vessels for 32,000 mt of HMS and shredded scrap each were reported to have been booked over the previous two weeks. The price was at $410-415/mt CFR for shredded scrap depending on the port (Kandla or Vishakhapatnam) and $395/mt CFR for HMS I/II scrap, but these prices have no longer been available over the past few days.
With more buyers entering the market following the scarcity in the local market, sellers have been nudging up prices.
“There are high expectations of finished steel prices firming up once a new government takes charge and economic policy-making revives. Traders and secondary mills have hence commenced import bookings as these will start to arrive at ports by the end of May and early June, by when the elections will be over,” a Mumbai-based trader said.
“Also, domestic supplies from the northern region have become very tight. There is a lot of nervousness in and around the trading center of Mandi Govindgarh in the north following investigations launched against some large traders for alleged evasion of the Goods and Service Tax (GST). Traders have unofficially reduced business activity, waiting for the situation to unravel further. Goods movement out of northern stockyards has slowed down as a result,” he said.