Import scrap prices in India have inched up with the market showing improved activity and select buyers among secondary mills willing to conclude deals although at the lower end of the offer price range, if available, SteelOrbis learned from trade and industry circles on Wednesday, March 19.
The reference price for Indian shredded scrap has increased by $13.5/mt on average over the past week to $385-392/mt CFR, with the midpoint at $388.5/mt CFR.
Sources said that, with more buyers and sellers active in the market after the recent holidays, containerised shredded scrap offers of UK/Europe origin have been hiked to $390-395/mt CFR Nhava Sheva port in the west, compared to levels of $375-385/mt CFR a week ago.
At the same time, buyers have also been more eager to purchase, so bids have increased as well. A booking confirmed by a Gujarat-based secondary mill for 1,500 mt of UK origin containerised shredded scrap was heard at $385/mt CFR, while another mill reported a booking for 1,000 mt at $388/mt CFR Kandla port.
However, as market activity improved, sellers were heard to be pushing sales at above $390/mt CFR. This was reflected in a trade for 2,000 mt of ex-Europe shredded scrap by a western India-based dealer at $392/mt CFR, the sources added.
Ex-Europe origin HMS I/II (80:20) has been quoted at $360-365/mt CFR, higher than $350-360/mt CFR a week ago, but no deals have been reported for this grade.
“There is a definite upward momentum in the market. Sellers are attempting to nudge up prices anticipating a tightening of supplies. Buyers are returning to the market but are still price-sensitive. The positive is that trade activity has resumed,” a Mumbai-based ferrous and non-ferrous distributor said.
“We can expect to see a continuation of this selective buying. There will be cautious import interest in the shredded scrap segment, while local sourcing will be preferred for mills seeking to use sponge iron or HMS scrap,” he said.
Meanwhile, in the local market HMS scrap is quoted INR 100/mt ($1.50/mt) lower at INR 33,900/mt ($390/mt) ex-Mandi Govindgarh in the north, but with some sellers reporting to be extending higher discounts of around 2-3 percent, compared to 1-2 percent a week ago, on higher volumes entering the market, sources said.