Import scrap trading conditions in India have become more sluggish after sellers had been attempting to push up prices, but the resultant widening of the bid-offer gap has made buyers even more cautious and only stray deals have been heard in the market, SteelObis learned from trade and industry circles on Wednesday, August 2.
Import shredded scrap prices in containers to India have increased to $410-412/mt CFR with the midpoint at $411/mt CFR, up by $3.5/mt over the past week.
According to the sources, a small-tonnage trade was confirmed for 1,500 mt ex-Europe shredded at $412/mt CFR Nhava Sheva port, though some sources said that this deal might be for higher quality material, with ex-UK plate and structural scrap totaling 2,000 mt changing hands at $425/mt CFR Kandla port in the west. Some offers for ex-Europe containerized shredded scrap have increased to $417/mt CFR
At least two sources said that a trade for 2,000 mt of ex-UK bulk scrap was heard at $380-385/mt CFR Haldia port in the east, but some traders said that the price was “not realistic’, and the real transaction level should be close to $370/mt CFR.
“Buyers are very cautious as the short-term trend varies between “range-bound” and “slow increase”. Sellers attempting to increase offers have also made buyers nervous amid extreme the bearish rebar market conditions faced by induction furnace operators,” a Mumbai-based distributor said.
“Our assessment is that global supplies might see some tightening in August. But it will have a limited impact on prices in the sub-continent as demand is very weak and most local currencies are depreciating against the US dollar. Hence, buyers will continue to resist price increases or will stay away from deals in the absence of urgent requirements,” he said.