Import scrap prices in India have continued their uptrend amid rapid restocking as more secondary mills have started looking at import sourcing with local scrap prices surging over the past week touching a 10-year peak, SteelOrbis learned from trade and industry circles on Wednesday, October 27.
Containerized shredded scrap prices have climbed to the range of $558-560/mt CFR Nhava Sheva and at least one deal was concluded at the week’s peak level of $565/mt CFR, against deals at levels of $550-560/mt CFR a week ago.
According to the sources, buyers were perceiving that prices had already bottomed out and have very little downside risks from current levels, triggering active restocking supported by the very positive outlook and sentiments for local prices of semis and finished products.
Local scrap prices have surged on the back of tight supplies to a 10-year peak, prompting more buyers to look at imports to source their raw material requirements. Trade circles said that local heavy melting scrap prices have moved up to as high as INR 41,000-42,000/mt ($546-560/mt) ex-Mandi Govindgarh, narrowing the differential with imported shredded scrap to nominal levels.
A week ago, the local scrap traded price was in the range of INR 38,700/mt ($516/mt) ex-Mandi Govindgarh, trade sources said.
Sources said that a Maharashtra-based secondary mill has reported a trade for shredded scrap at $560/mt CFR.
A central India-based secondary induction furnace operator has reported a trade for ex-UK bulk HMS I/II (80:20) at $530-535/mt CFR Kandla port in the west compared to similar cargo deals concluded in the range of $510-520/mt CFR a week ago.
A higher tonnage deal for ex-US shredded material was heard at the week’s highest price of $565/mt CFR Kandla port and, though the buyer’s identity could not be confirmed, the market sources speculate that it is one of the west coast’s largest metal scrap trading firms.
$1 = INR 75.00