Import scrap prices in India have continued to lose ground but, even though secondary mills have been better placed to restock raw materials following the rebound in the rebar market, preference has shifted to more cost-effective local sponge iron sourcing, resulting in no significant import scrap trades, SteelOrbis learned from trade and industry circles on Wednesday, March 13.
Ex-Europe containerized shredded scrap prices are quoted in the range of $395-400/mt CFR Nhava Sheva port in the west, compared to $405-406/mt CFR a week ago. HMS (80:20) scrap prices have fallen to $365-370/mt CFR, from $370-380/mt CFR a week ago.
“Against backdrop of improved realizations from rebar over the past two weeks, secondary mills are better placed to restock raw materials. But local sponge iron is a more cost-effective alternative. Also, buyers are expecting further declines and hence are staying away from riskier import trades and are sourcing local raw materials,” a Mumbai-based ferrous and non-ferrous trader said.
“The international scrap market is expected to show volatility with divergent trend expectations. Price variations will continue to keep Indian buyers on the sidelines. Also, with the holidays ahead for Holi (festival of colours), buyers will continue to look at domestic raw materials” he said.