Import scrap prices remained almost stable in India over the past week, but trade conditions are silent giving the persistently weak construction grade steel market, prompting low bids submitted by induction furnace operators, which have been declined by most sellers, SteelOrbis learned from trade and industry circles on Wednesday, July 2.
Ex-UK/Europe containerised shredded scrap offers have been reported in the range of $360-365/mt CFR Nhava Sheva port in the west, just slightly above $360/mt CFR seen last week, but bids have still been reported at not above $355/mt CFR. However, sellers are refusing any price adjustments, given bids from India being at the lowest level compared to other South Asian countries, and so no deals have been confirmed in the market.
Similarly, offers for HMS I/II (80:20) of UK origin are stable at $338-340/mt CFR, but no deals have been done over the past week, the sources said.
“Both buyers and sellers have remained on the sidelines. Buyers - induction furnace operators - have no appetite to restock raw materials amid weak finished long product prices and considerations of reducing plant output levels to ease supply-side pressures. On the sellers’ side too, adjustments to offer levels have been complicated by the rise in prices seen in bellwether global markets, resulting in logjam trade conditions in India,” a Mumbai-based trader said.
“We expect import prices to be range-bound and trade activity to be minimal unless iron ore prices and finished steel prices show a strong rebound,” he added.
Meanwhile, bulk scrap prices in the local market have showed signs of a mild recovery and traders have been pulling back discounts in reaction to the slight tightening of supplies arriving in the market. Bulk scrap prices have gained INR 200/mt ($2/mt) to INR33,000/mt ($385/mt) ex-Mandi Govindgarh in the north.
