Import scrap prices in India have moved down slightly amid the fall in demand and with buyers staying away from new deals given large arrivals at ports against past contracts, but this was largely seen to be a temporary pause considering the strong performance in the construction grade steel sector, SteelOrbis learned from trade and industry circles on Wednesday, September 13.
The SteelOrbis reference price for containerized shredded scrap in India has declined from its highest level of $440/mt CFR last week to $430-435/mt CFR.
Sources said that 1,000 mt of ex-Europe containerized shredded scrap was booked at $437/mt CFR Mundra port in the west, while another deal was done at $430/mt CFR Nava Sheva early this week. Around 2,000 mt of ex-UK shredded scrap have been booked at around $435/mt CFR Nhava Seva port.
There were reports of deals for undisclosed tonnages for ex-US bulk shredded scrap at $430/mt CFR done last week.
A trade for ex-West Africa HMS (80:20) scrap was reported at $410-415/mt CFR, compared to $414-418/mt CFR a week ago.
“There is a slight demand-supply mis-match in the market right now. Buyers are taking confidence from large volumes that have arrived at ports to meet immediate demand and, with the local currency depreciating and once again breaching the INR 83.00 to the dollar mark, buyers have been taking a pause,” a Mumbai-based distributor said.
“But having said that, imported scrap demand will bounce back as everyone in the secondary steel sector is increasing long product steel output in a fast-moving market. Our assessment is that imported scrap prices will start moving up in October and that local buyers will be back over the next week before prices get on to the next up-cycle,” he said.