Import scrap prices in India have remained rather stable with a negative bias over the past week, but trade activity has been muted by the low bids submitted by buyers and secondary mills have been unwilling to restock imported raw materials with the monsoon season of low demand approaching and given the availability of cheaper local alternatives, SteelOrbis learned from trade and industry circles on Wednesday, May 21.
Ex-UK/Europe containerised shredded scrap offers have been reported unchanged at levels of $370-372/mt CFR Nhava Sheva port, but, with bids at as low as $360-365/mt CFR, no deals have been concluded during the week in review. Also, some ex-Australia shredded may be booked at $365/mt CFR.
The SteelOrbis reference price for import shredded in India has settled at $360-370/mt CFR, versus 365-374/mt CFR last week.
The sources said that ex-UK HMS I/II (80:20) scrap has been available at the slightly lower range of $345-350/mt CFR, compared to $345-355/mt CFR, but secondary mills have been seeking a price in the range of $340/mt CFR, resulting in silent trade in this segment.
It was pointed out that, with monsoon rains forecast early and expected to set in later this month, secondary mills have not been willing to increase inventories of imported raw materials in the face of the rising challenges and cost of maintaining them in open stockyards, and have preferred local ‘just-in-time’ sourcing of scrap from the domestic market.
Market intermediaries said that local scrap prices have been maintained at INR 34,000/mt ($397/mt) ex-Mandi Govindgarh in the north but volume-based discounts on offer increased to around five percent as dealers have been keen to liquidate inventories ahead of the advent of rains.