Import scrap prices in India have been pushed up over the past week, with sellers citing a tightening of supplies coupled with rising freight rates, but the higher prices have been unviable for buyers, with just a few stray deals reported for lower-priced grades, SteelOrbis learned from trade and industry circles on Wednesday, July 29.
Ex-Europe/UK origin containerized shredded scrap offers are reported at $395/mt CFR Nhava Sheva port in the west or even above, compared to $385-390/mt CFR a week ago. Buyers' price ideas are still much lower, so the reference price for this grade has settled at $385-395/mt CFR, increasing by $5/mt over the past week.
Similarly, offers for HMS I/II of the same origin have ranged at $335-340/mt CFR, against $330-335/mt CFR a week ago, but the tradable level has not improved over the past week.
According to the sources, the higher import prices are not viable for secondary mills, which are facing weak finished steel prices and lower capacity utilization of furnaces, which is depressing raw material requirements.
Trade circles said that an import deal has been confirmed by a Gujarat based secondary mill for 2,000 mt of LMS (light melting scrap) bundles of African origin at $300-305/mt CFR.
Another trade for 2,000 mt of turning/boring scrap of Australian origin was confirmed at $310-315/mt CFR Chennai port in the west.
“Current weak finished steel prices make raw material imports operationally uneconomic. Local sourcing is a preferred option to meet lower raw material demand,” a Mumbai-based ferrous and non-ferrous metals trader said.
