India’s import scrap prices have gained further strength during the past week riding on gains in rebar prices and local scrap prices surging to an historical high and overseas sellers holding back deals in anticipation of further rises, SteelOrbis learned from trade and industry circles.
The containerized shredded scrap has been traded at $535-545/mt CFR Nhava Sheva port, up by $15/mt on average from deals concluded at $520-530/mt CFR a week ago.
According to the sources, the rise in import activity and acceptance of higher prices are largely owing to secondary mills increasing rebar prices and sellers pushing up local HMS scrap prices by INR 1,700/mt ($23/mt) to INR 38,000/mt ($503/mt) ex-Mandi Govindgarh, in the north.
Secondary mill operators said that, with local melting scrap prices touching historical highs and traders declining to accept bids expecting further increases, imported shredded scrap prices have become attractive even after gains during the week.
They said that, with mills increasing billet and rebar prices, conversion margins too had improved, enabling secondary mills to look at imports for their raw material restocking.
A section of the market said that restocking and trading activity would have seen a much higher level, but for the fact some induction furnace operators were facing four to five hours of power cuts owing to the fall in electricity generation, and coal shortages across India prompting some northern India-based furnace operators to keep raw material procurement at lower levels.
Sources said that a Gujarat-based secondary mill has reported a deal for containerized shredded scrap at around $540/mt CFR Nhava Sheva for December delivery.
A Raipur-based mill in central India has concluded a bulk trade at $535-540/mt CFR Kandla port in the west.
An eastern India-based steel mill has reportedly concluded a trade for 20,000 mt of HMS I/II 80:20 at $500-510/mt CFR Haldia port.
$1 = INR 75.40