Import scrap prices in India have recorded marginal gains over the past week amid slightly renewed buying activity, although several market participants have claimed that “the short and medium-term trends are confusing,” SteelOrbis learned from trade and industry circles on Wednesday, September 8.
Offers for containerized shredded scrap were at $515-520/mt CFR Nhava Sheva port in the west with deals at $516-518/mt CFR, a marginal improvement from $510-512/mt CFR a week ago.
The sources said that a section of the market has been enthused by the return of buyers, indicating an improvement in trading activity for October onwards as the retreat of the monsoon season and the traditional buoyant period of October-December will see a positive influence on demand from secondary mills.
However, bearish sentiments have been expressed by a few secondary mills. “Current market conditions are very confusing. There are buyers one week and the very next week there is no trading,” an eastern India-based electric arc furnace (EAF) operator said.
“There will be intermittent buying, not sustained buying. There is a fundamental weakness in secondary mills producing long products. With the capacity utilization of mills averaging below 60 percent, how can there be buoyancy in raw material demand. The import raw material market is risky for financially stressed buyers,” he added.
According to a Gujarat-based scrap trader cum EAF operator, imported scrap trades will remain muted from weak demand and prospective buyers seeing further downside potential as the markets in key regions like Turkey, Vietnam and Japan are very weak and this will pull down local Indian prices too.
Sources said that a leading Mumbai-based trader has reported a deal for November shipment at a price of $518/mt Nhava Sheva.
Another deal has been heard from a Maharashtra-based secondary mill at a price of around $516/mt CFR Kandla port.
A secondary mill from Raipur in central India has reported a trade for bulk scrap HMS I/II (80:20) at $440-450/mt CFR, the sources said.