Import scrap prices in India have showed some volatility with offers quoted at higher levels early in the week but falling back amid a muted response from buyers as secondary mills still lacked confidence in restocking raw materials despite sporadic improvements in finished long steel products, SteelOrbis learned from trade and industry circles on Wednesday, August 6.
Ex-UK/Europe containerized shredded scrap offers have been pushed up to $375-380/mt CFR Nhava Sheva port in the west, up by $5/mt over the past week. However, with bids far below this level, offers were adjusted towards the close of the week to $365-370/mt CFR.
A few offers for ex-Australia containerized shredded scrap have been reported at around $360-365/mt CFR, but no deals were confirmed in the market.
The SteelOrbis reference price for containerized shredded scrap in India has settled at $360-370/mt CFR this week, moving down by $5/mt from the previous week.
Similarly, UK origin HMS I/II (80:20) scrap was quoted at $345-350/mt CFR first, but was soon adjusted lower to the range of $330-340/mt CFR, down from $345-340/mt CFR a week ago.
A section of sources said that there are reports of ex-Australia bulk HMS scrap offers at around $320/mt CFR Haldia port in the east, but there has been no market information of any deals being concluded against such offers.
“Buyers and sellers currently have divergent outlooks on the imported scrap trade. Sellers are taking a cue from the stability in bellwether markets, expecting an uptrend. Buyers lack confidence to restock heavily as finished steel prices show an uncertain trend. These differences are reflected in some scrap price volatility,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Local induction furnace operators are cautious on imports owing to the fresh depreciation of the rupee against the US dollar and with margins from finished steel uncertain and mills hamstrung in passing on higher input costs to consumers. Hence, we see the limited trade in imports continuing,” he said.