Import scrap prices in India have lost ground over the past week in line with global cues and trade has been falling silent amid the widening bid-offer gap and with sufficient local supplies of scrap and sponge iron, SteelOrbis learned from trade and industry circles on Wednesday, April 16.
Offers for ex-UK/Europe origin containerized shredded scrap are at $380-385/mt CFR compared to $390-395/mt CFR a week ago, but bids are reported in the range of around $378-380/mt CFR, down by $5-7/mt over the past week. No deals have been confirmed this week.
The tradable level for import shredded scrap in India has declined by $7.5/mt on average over the past week to $380/mt CFR.
Offers for HMS I/II (80:20) scrap are reported at $360-370/mt CFR, against $365-375/mt CFR a week ago.
Sources said that at least two deals for ex-Australia origin HMS scrap aggregating 5,000 mt were signed in the market at an average of around $362/mt CFR Chennai port, but confirmation was not readily available.
Most induction furnace operators indicate sufficient local supplies of scrap and sponge iron at competitive prices and hence imports are not being looked at as a raw material sourcing option unless prices are close to a new bottom.
Sources said that local HMS scrap prices have been maintained at INR 34,900/mt ($406/mt) ex-Mandi Govindgarh, but discounts have been extended to 3-4 percent, against 2-3 percent earlier amid higher supplies, while sponge iron prices have dipped INR 200/mt ($2/mt) to INR 32,100/mt ($373/mt) ex-Mandi Govindgarh, offering viable alternative raw material options for furnace operators.
“The Indian imported scrap market remains quiet as buyers expect a further downside to prices as the impact of tariffs is fully felt in the market. A slight weakening in the local long products market also somewhat undermined confidence among importers,” a Mumbai-based ferrous and non-ferrous scrap trader said.
$1 = INR 86.00