Import scrap prices in India have lost ground in the past week amid global cues, but bids have been even lower as buyers are cautious with the finished long products market entering a new downturn and given the divergent short-term outlooks for bellwether scrap markets, SteelOrbis learned from trade and industry circles on Wednesday, April 30.
Offers for ex-UK/Europe containerised scrap have been submitted at around $370-373/mt CFR Nhava Sheva port, down from $375-378/mt CFR a week ago, but with bids heard at $365/mt CFR, while no deals were confirmed in the market.
The SteelOrbis reference shredded price has settled at $365-370/mt CFR, losing $5/mt over the past week.
Offers for HMS I/II (80:20) are in the range of $345-350/mt CFR for ex-UK origin, compared to $350-360/mt CFR a week ago, but local sourcing options have been preferred, with prices continuing their decline and with offers topped up with additional discounts.
Sources said that local HMS scrap prices have continued to move down, losing another INR 300/mt ($4/mt) to INR 34,300/mt ($403/mt) ex-Mandi Govindgarh, with additional 2-3 percent volume-based discounts.
“The outlook on imported scrap is very divergent. A section of secondary mills is awaiting further declines and submitting very low bids in view of the softening of local long product prices and is unwilling to absorb higher raw material prices. At the other end, a section of market feels that imported scrap prices in bellwether markets like Turkey may have bottomed out and are poised for a rebound,” a Mumbai-based ferrous and non-ferrous trader said.
“Irrespective of short-term trends, import activity is unlikely to revive till such time long product prices and stock movement improve lending higher confidence among secondary mills to restock higher-priced raw materials,” he said.
$1 = INR 85.12