Import scrap prices in India have showed marginal declines over the past week, but trading has been limited as the short-term direction remains uncertain among buyers maintaining divergent outlooks and amid the fundamental demand weakness in the finished steel market, SteelOrbis learned from trade and industry circle on Wednesday, May 31.
Ex-Europe containerized shredded scrap prices have slipped to $435-440/mt CFR, marginally lower than $440/mt CFR a week ago, no deals have been concluded as buyers have been seeking valuations below $430/mt CFR to offset the latest depreciation of the local currency against the US dollar.
Ex-UK shredded scrap prices were quoted slightly lower than $440/mt CFR but no deals were heard in the market.
Scrap HMS (80:20) offer prices have been reported at $420-430/mt CFR, against $425/mt CFR a week ago.
Market participants that said that multiple forces and counter-forces are at play in the global scrap trade and local buyers prefer to wait for a more definitive trend to emerge.
They said that prices have been stable and, in some cases, have been going down largely because some tightening of supplies, particularly from the US, has been offset by the overall depressed demand. Trade activity continues to remain low in South Asia and in the Indian sub-continent amid weak finished steel prices and currency volatility.
“Considering the weak finished steel market, some correction is expected in raw material prices. The tightening in supplies is only temporary,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Overall demand for steelmaking raw materials, including intermediates like sponge iron, remains depressed and will exert pressure on scrap prices too,” he said.