Import scrap offers to India have been nudged up slightly over the past week against the backdrop of global cues and, while trade has remained largely muted amid the sufficient local availability of normal grades, some moderate buying has been reported for higher grade scrap by large electric arc furnace (EAF) operators in the west, SteelOrbis learned from trade and industry circles on Wednesday, January 21.
Sources said that ex-UK/Europe containerized shredded scrap offers have been reported the in the range of $355-365/mt CFR Nhava Sheva port in the west, compared to $355-358/mt CFR a week ago.
Ex-UK HMS I/II (80:20) scrap has been quoted in the range of $330-345/mt CFR compared to $330-342/mt CFR a week ago, while ex-Australia material of same grade stands at $330-335/mt CFR, sources said.
According to the sources, import trade activity has been kept alive by renewed interest in higher grades of scrap like PNS (plate and structural scrap) cut to specific sizes and free of non-metallic contamination at a premium, as a few western India-based EAF operators have been unable to source the raw material essential for the production of specific grades of finished steel.
Citing examples, the sources said that Gujarat-based furnace operators reported concluding a deal for 2,000 mt of ex-Malaysia PNS material at around $365/mt CFR Kandla port. Similarly, another Maharashtra-based furnace operator-cum-scrap dealer concluded a trade for 5,000 mt PNS at $358/mt CFR Nhava Sheva port but information regarding the origin of the import scrap could not be ascertained.
“Scrap imports now are essentially need-based. Most induction furnace operators are dependent on local supplies for normal scrap grades as they want to avoid the volatility of the Indian rupee against the US dollar and week-on-week depreciation increasing trade risks,” a Mumbai-based distributor said.
“However, there is some selective buying of higher grades like PNS and HMS 90:10 depending on specific requirements of furnaces and finished steel specifications and their tight supply from local traders,” he added.
