Import scrap prices in India have hardened as fewer sellers have been active in the market due to challenges in shipping, but deals have been limited at the same time with buyers becoming cautious and submitting lower bids, SteelOrbis learned from trade and industry circles on Wednesday, May 8.
Ex-Europe and ex-UK containerized shredded scrap offer prices have moved up to the range of $425-430/mt CFR Nhava Sheva port in the west, versus reference prices of $422-425/mt CFR last week. However, local traders and induction furnace operators are heard to be submitting bids at $420-425/mt CFR, but which are not acceptable to sellers. A few deals were reported at $425/mt CFR and one at $427/mt CFR, which sources assess as being on the higher side.
Also, ex-Europe HMS (80:20) scrap has been quoted in the range of $405-410/mt CFR, compared to $400-405/mt CFR a week ago.
“Scrap import prices got on to an uptrend amid the supply-side tightening. There are challenges to deliveries and shipping through the Middle East. There is not much buying support as secondary mills are cautious,” a Mumbai-based trader said.
“However, the demand side may change quickly against the background of the rapid recovery in the long products market and with secondary mills in a much better position to restock imported raw material. Sellers will become more assertive with any kind of rebound too,” he said.