Local Indian scrap prices have rebounded during the past week, gaining ground in tandem with the surge in import offers even though trades during the week have remained limited, SteelOrbis has learned.
Import offers which had been steady early in the month have staged a strong rally during the past week with ex-UAE offers for shredded scrap at $282-286/mt CFR Nhava Seva, compared to the range of $250-255/mt CFR during the previous week, with the sources pointing out that at least two deals have been concluded at the higher levels.
Though the overall number of trades concluded for imported scrap was limited, at least two deals for end-January delivery were reported in the market for shredded scrap at the much higher level of $291/mt CFR Nhava Seva, indicating the strong performance of imported scrap and expectations that the rally will continue.
“Import offers are largely gaining ground rapidly owing to sharp price increases in key markets like Turkey. Tight supply-side pressures are also emerging with US finished steel prices increasing and higher demand for steel scrap. This is expected to provide support for prices and for scrap import offers to India to remain on an uptrend in the coming weeks,” a member of the Metal Recycling Association of India (MRAI) said.
Local scrap prices have surged by INR 1,100/mt ($16/mt) to INR 23,500/mt ($331/mt) ex-stockyard at Mandi Govindgarh in northern India. Scrap prices have gained INR 1,000/mt ($14/mt) to INR 22,800 ($322/mt) ex-stockyard at Alang in the west.
$1 = 70.90