Indian imported shredded scrap prices got onto a definite downtrend in line with falling domestic steel prices and buyers reluctant to commit deals in a falling market and possibility of a new deeper bottom indicated by over-supply and sharp fall in bellwether market of Turkey, SteelOrbis learned from trade and industry circles on Wednesday.
Ex-US containerized shredded scrap price was heard at $600-615/mt CFR Nhava Sheva port in west compared to $610-630/mt CFR a week ago. Ex-UK shredded scrap offer was reported even lower at $590-595/mt CFR but still failed to attract any buying interest as further declines were anticipated in view of excess supplies and weak steel prices.
“Local buyers are taking cue from declines in a key market like Turkey and reports of emergence of excess supplies ex-US. The inherent weakness in the local secondary steel sector, fall in local bulk scrap and sponge iron prices are keeping interest in imports at negligible levels,” a Mumbai based ferrous and non-ferrous scrap trader said.
“Local secondary mills continue to shift to sponge iron, price of which is rapidly declining too. Even limited interest in scrap imports by traders are focussed on ex-UAE scrap as it is available at far below $600/mt CFR mark,” he said.
Sources said that two ex-UAE origin shredded scrap deals were heard in the market for 10,000 mt and 12,000 mt for June delivery at prices of $590/mt and $595/mt CFR Kandla port in the west.
Meanwhile in the local market, bulk scrap price was down INR 1,000/mt ($13/mt) at INR 45,000/mt ($588/mt) ex-warehouse at Mandi Govidgarh in the north.
Exchange rate: $1= INR 76.50