Import scrap offers in India have continued to decline over the past week, but buyers still remain on the sidelines with secondary mills facing weak finished steel prices and with reduced raw material restocking seen during the lean monsoon season, SteelOrbis learned from trade and industry circles on Wednesday, June 24.
Sources said that ex-UK/Europe containerized shredded scrap offers are reported in the range of $385-390/mt CFR Nhava Sheva port in the west, compared to $395-400/mt CFR a week ago, but bids are lower in the range of $375-380/mt CFR and no deals have been concluded.
Similarly, European origin HMS I/II offers are reported at $340-345/mt CFR, compared to $345-355/mt CFR a week ago and African origin offers at around $335/mt CFR Mundra port, but secondary mills have preferred local sourcing to meet limited raw material demand during the rainy season, the sources said. Only stray deals at $335/mt CFR or below for lower grade HMS have been reported.
It has been pointed out that mills are in no hurry to restock raw materials amid the combination of declining prices of finished steel, low seasonal demand and planned output cuts. Local sourcing of small volumes is the more preferred viable option.
“Import offers are declining on global cues. But this is not sufficient to drive sales as there is a fundamental weakness in steel prices and low demand is expected to continue for the next two to three months,” a Mumbai-based ferrous and non-ferrous scrap distributor said.
“Apart from the price, imports are also not viable for the current low-volume requirements of mills,” he added.
