Import scrap trading conditions in India have become livelier as a sharp drawdown in stocks triggered restocking by secondary mills with fewer sellers active in the market, but prices were from relatively stable for shredded, to down for HMS, as bearish sentiments are still strong in both Indian and international markets, SteelOrbis learned from trade and industry circles on Wednesday, July 19.
Ex-India shredded scrap reference prices have remained stable at last week’s level of $405/mt CFR. Even though some suppliers have been voicing higher offers for shredded at $406-407/mt CFR and up to $410/mt CFR, customers have been reluctant to pay higher prices.
At the same time, a booking for 500 mt of ex-Brazil HMS I/II (80:20) scrap was confirmed at $388/mt CFR. Offers for ex-Europe HMS I/II scrap are at $385-395/mt CFR, versus $390-395/mt CFR last week with one deal rumored at the lower end of the range this week. Moreover, some negotiations for HMS I/II (80:20) scrap have been held today at $375-380/mt CFR already, though there have been no reports about deals so far. Stronger interest in HMS scrap bookings at lower prices signal that the Indian scrap market remains very price-sensitive and mills are ready to restock raw materials only at lower prices, taking into account bearish moods in the finished steel market, adverse weather conditions, and lower production utilization.
“I would see the current improvement in trades as emergency restocking by secondary mills which have been off imports for a very long time,” a Mumbai-based trader said.
“Considering the trends in Western markets, a strong correction cannot be ruled out. Import activity will taper off soon as prices of semis and finished steel in the local market are weakening every week and are unlikely to support any aggressive raw material restocking,” he said.