Import scrap prices in India have continued to move up gradually during the past week, with sellers nudging up offers citing the tightening of supplies amid moderate buying which, however, has been confined mostly to higher grades of scrap, SteelOrbis learned from trade and industry circles on Wednesday, February 11.
Sources said that ex-UK/Europe and ex-Australia containerized shredded scrap offers are quoted at $365-375/mt CFR Nhava Sheva port, compared to $355-365/mt CFR a week ago, but no deals have been reported for this grade.
Ex-UK origin HMS I/II (80:20) offers have been reported in the range of $348-350/mt CFR, compared to $340-345/mt CFR a week ago, while offers for this grade from Australia are at $345/mt CFR.
According to the sources, ex-Australia offers and trades have remained the focus of most of the limited buying activity over the past week.
The sources said that two tonnages of 1,000 mt and 500 mt of HMS I scrap of Australian origin were booked by a southern India-based induction furnace operator at an average price of $345/mt CFR Chennai port.
Another trade for 1,500 mt of ex-Australia PNS (pipe and structural scrap) was reported also by a southern India-based importer at $380/mt CFR Chennai port, the sources added.
“Interest in higher grade scrap was sustained by induction furnace operators seeking improved melting consistency and ensuring reduced contamination to achieve cost efficiencies. Higher grades like PNS and busheling are not readily available locally, particularly for southern India-based induction furnace operators, for whom local sourcing entails very high transportation costs from the northern region,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Furthermore, deliveries at southern ports ensure lower handling costs as these ports are less congested and closer to regional furnaces,” he added.