Import scrap prices in India have trended up during the past week, with sellers attempting to push up offers citing a slight tightening of supplies, but trading activity has remained negligible with buyers pausing restocking amid the uncertain trends seen in the local finished steel market, particularly in the long product segments, SteelOrbis learned from trade and industry circles on Wednesday, February 18.
Sources said that ex-UK/Europe containerized shredded scrap offers are in the range of $372-375/mt CFR Nhava Sheva port in the west, compared to $365-375/mt CFR a week ago, while ex-UK origin HMS I/II (80:20) offers have been quoted at $350-355/mt CFR compared to $348-350/mt CFR a week ago.
However, secondary mills have remained out of the market, citing sufficient stocks and local availability and a reluctance to enter into foreign exchange trading risks at a time when local finished steel pricing trends are lacking a direction.
“Induction furnace operators are generally unwilling to accept higher offers at a time when the landed price of imports is already rising owing to the weak local currency. At the same time, most mills are reporting sufficient stocks of raw materials. With the fiscal year nearing its end, mills are also reluctant to tie up liquidity in building inventories,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“We feel that import price levels will adjust after Ramadan and the holiday in China. Hence, buyers will prefer to await a new trend till then,” he added.
