India’s imported scrap prices have weakened during the past week in reaction to the falling finished steel prices of secondary mills and sellers withdrawing from the market as the government has imposed lockdowns, triggering fresh disruptions of supplies and deliveries, SteelOrbis has learned on Wednesday, March 18.
Local scrap prices have fallen due to a lack of demand as secondary steel mills have been fighting inventory build-ups coupled with the softening of steel prices, the traders said.
Market sources said that traders and recyclers based in Europe have almost stopped accepting bids as the EU has locked down borders and the Indian government has banned all arrivals from the region, which has impacted sentiments and caused uncertainties over bookings and deliveries from suppliers in the EU.
The sources said that ex-US heavy smelting scrap (HMS 80:20) prices are down to the range of $285-290/mt CFR Mumbai, but both sellers and buyers have been unable to conclude any deals amid disagreement over settlement terms and delivery schedules, while no price quotations have been available for ex-UK material.
Sources said that a Maharashtra-based electric arc furnace steel mill reported that it concluded a deal for ex-UAE shredded scrap at $279/mt CFR Nhava Seva port in the west for April delivery, compared to similar deals concluded at $285-287/mt CFR earlier. At the moment, the nominal price level for shredded scrap from the EU has decreased by $5/mt to $290/mt CFR
“Based on reports received among secondary steel mills, a number of EU-based scrap traders and suppliers have informed that they would be closing down fresh bookings for April deliveries in view of fresh restrictions and stricter border screening of consignment agents across the region. Both demand and supply are falling rapidly and local imported scrap buyers are unwilling to take risks amid uncertainties,” a member of the Metal Recycling Association of India (MRAI) said.
The lack of appetite to restock raw material by secondary steel mills and EAF-based steel mills has been reflected in the sharp fall in scrap prices in the local market. Prices are down INR 500/mt ($7/mt) to INR 22,650/mt ($305/mt) ex-stockyard at Mandi Govindgarh in northern India. Prices have fallen INR 400/mt ($5/mt) to INR 21,600/mt ($291/mt) ex-stockyard at Alang in the west.
$1 = INR 74.20