The import scrap market in India has showed mixed trends in the past week, with wide variations in prices and with buyers shifting the focus of their limited volume requirements to cheaper ex-West Africa HMS scrap, SteelOrbis learned from trade and industry circles on Wednesday, February 28.
Wide variations in prices have been reported for ex-Europe containerized shredded scrap with offers ranging at $412-415/mt CFR Nhava Sheva port for shipments in March and April, marginally up from $410-412/mt CFR a week ago. But higher prices have been reported in the range of $430-435/mt CFR for shipments beyond April.
Ex-UK HMS (80:20) scrap prices are reported at $390-400/mt CFR, against $385-389/mt CFR a week ago, but the limited buying focus has been on West African origin HMS scrap quoted in the range of $375-380/mt CFR, sources said.
They said that a Gujarat-based trader cum secondary mill operator has reported two separate deals for 500 mt and 1,000 mt of ex-West Africa HMS scrap at the average price of around $377/mt CFR Kandla port in the west.
Another private trading firm has concluded a deal for the same origin for a tonnage of 3,000 mt at $380/mt CFR Mundra port in the west.
“With secondary mills operating at low capacity given weak finished steel prices, demand for imported scrap is low. Also, in view of the fall in sponge iron prices by INR 500/mt ($6/mt), it is a preferred feedstock for mills,” a Mumbai-based trader said.
“Higher prices being quoted for scrap for post-April shipments indicate that expectations of a continued decline are fading. Even the limited import interest is therefore confined to imminent shipments as the risks for forward bookings are not viable with finished steel margins unlikely to improve over the next few months,” he said.