Import scrap prices in India inched up on the back of a slight revival of restocking by secondary mills, but these gains were wiped out soon thereafter, indicating a weak appetite for imported raw materials due to the extended weak outlook in the rebar segment, SteelOrbis learned from trade and industry circles on Wednesday, September 29.
Prices for containerized shredded scrap have declined to $510-515/mt CFR Nhava Sheva, down by $5/mt from last week. This happened even after a trade for ex-US shredded scrap at $520-530/mt CFR Kandla port a bit earlier.
According to trade sources, while Indian secondary mills have been extremely cautious in booking large volumes in view of low rebar prices and only a few mills were resorting to “urgent restocking” the softening of prices in Pakistan also contributed to several sellers reducing their focus on the region.
They said that, while trading in Pakistan was supporting prices over the past weeks, with deals heard at $515-520/mt CFR Port Qasim, sellers are largely seen to be retreating from the region.
Sources said that a Gujarat-based secondary steel mill cum trader has reported a trade for shredded scrap at a price of $525-530/mt CFR Kandla port.
However, prices were down to $510-520/mt CFR towards the close of the week, but even the lower levels have failed to attract any buying, reflecting a lack of raw material demand from the low capacity utilizations of local mills.
“Indian secondary mills are increasingly dependent on locally sourced sponge iron to meet limited raw material requirements rather than become exposed to the risks of import trades,” a Mumbai-based scrap trader said.
“Volatility will continue to keep activity at a low level,” he said.