Import scrap prices in India have firmed up significantly over the past week due to the impact of the war in the Middle East, with some sellers quoting far above the average, but buyers have remained on the sidelines amid the absence of any definite delivery timelines and opaque surcharges, SteelOrbis learned from trade and industry circles on Wednesday, March 11.
Ex-UK/Europe containerized shredded scrap offers have been quoted in the range of $385-390/mt CFR Nhava Sheva port in the west, up from $378-380/mt CFR a week ago. Some offers are even higher by around $30/mt, reflecting the highly volatile market conditions.
Ex-UK HMS1 is reported at $370-372/mt CFR, the sources said, while the cheapest option for HMS I/II is Australia at $360-365/mt CFR.
The sources said that, not only have the high prices kept buyers on the sidelines, but undisclosed or opaque surcharges proposed to be levied by shippers are also a major roadblock to concluding any contracts between buyers and sellers, with the final landed price of imports remaining uncertain.
It was also pointed out that induction furnace operators have issued a warning that production cuts by as much as 50 percent, if not the complete closure of furnaces, are imminent as the government has imposed regulations on natural gas supplies and distribution to ‘non-priority’ sectors since imports of liquefied natural gas (LNG) have been disrupted by the war in the Middle East.
“Hence, at a time when production by furnaces is under threat, risking imports of raw material is largely out of the question,” the sources said.
