Import scrap prices in India have inched up further with sellers citing tight supplies even as trade activity has been muted, with buyers deferring restocking until after the holidays or because of the long products market slipping into a decline, SteelOrbis learned from trade and industry circles on Wednesday, November 8.
Ex-Europe containerized shredded scrap offer prices have been quoted in the range of $405-410/mt CFR Nhava Sheva port in the west, up by $5/mt from the reference price a week ago, while ex-UK HMS (80:20) scrap is at $385-390/mt CFR, compared to $380-385/mt a week ago.
A quote for ex-Kuwait HMS I scrap has been at $405/mt CFR, versus $390/mt CFR last week, but this could not be confirmed as the deal price in trade circles.
A trade for 1,000 mt of ex-US containerized shredded scrap was heard at $400/mt CFR Kandla port in the west and, while this too could not be confirmed, at least two sources in trade circles claimed the price to be “too low considering the tightening of supplies in key originating sources.”
“We are expecting prices to remain on the higher side as there are limited supplies from Europe. But the appetite for high-priced raw material is very limited among local secondary mills. Most are unnerved by the recent slump in construction grade steel prices,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“We do not think that the lack of trade activity is because of the holidays ahead. There is fundamental weakness emerging in the finished steel market. Whether this is prolonged is difficult to say. But mills will be very reluctant and cautious in accepting higher-priced raw materials,” he said.