Rapid trading of higher volumes has continued to push up Indian imported scrap prices, supported by the sharp increase in prices in the local market and restocking by secondary mills which are expecting improved market conditions for rebar in the third quarter, SteelOrbis learned from trade and industry circles on Wednesday, October 20.
Containerized shredded scrap prices have gained strength to $550-560/mt CFR, with at least one trade heard at the week’s highest level of $562/mt CFR, signalling a surge by around $15/mt compared to trades concluded at $535-545/mt CFR a week ago.
Higher prices and tight availability in the local market have also triggered an increase in buying interest for ex-UK bulk heavy melting scrap HMS I/II (80:20) at prices heard at around $510-520/mt CFR, compared to a single deal a week ago at $500/mt CFR, market sources said.
Trade sources said that local bulk scrap prices have risen for the second consecutive week, moving up by INR 700/mt ($9/mt) to INR 38,700/mt ($515/mt) ex-Mandi Govindgarh in the north and the narrowing of the differential with the landed price of imports has prompted more secondary mills to conclude deals with overseas sellers.
According to the sources, a Maharashtra-based secondary mill has reported a trade for shredded scrap for end-of-December delivery at $550-552/mt CFR Nhava Sheva port in the west.
A Mumbai-based scrap trader has reported a trade for the same grade at the week’s highest level of $560/mt CFR, the sources said.
A central India-based electric arc furnace operator cum scrap trader has concluded a trade at $555/mt CFR Kandla port for December delivery, the sources said.
“Local mills have become active in restocking materials. Firstly, because rebar producers expect a market revival during the third quarter, usually when construction activities peak for the year. Secondly, scrap prices have bottomed out and, with long steel product prices finding stability, scrap prices will seek higher levels going forward in the next two quarters,” a Mumbai-based scrap trader said.
“Lead time in deliveries is also shortening giving higher comfort levels to buyers,” he added.
$1= INR 75.20