Import scrap prices in India have risen slightly amid a tightening of supply, but buyers have been cautious due to the weak local currency and the uncertain trend in the rebar market, and so only small-volume deals have been reported, SteelOrbis learned from trade and industry circles on Wednesday, November 1.
Ex-Europe containerized shredded scrap is quoted in a range of $400-405/mt CFR Nhava Sheva port in the west, up from $395/mt CFR a week ago.
Ex-UK HMS (80:20) scrap is quoted in the range of $380-385/mt CFR, higher than $375/mt CFR Nhava Sheva last week.
The sources said that 1,000 mt of ex-Europe containerized shredded scrap was booked by a Mumbai-based trader at $403/mt CFR, while another deal for 500 mt was concluded at $402/mt CFR Kandla port.
A deal for 1,000 mt of ex-Kuwait HMS scrap has been confirmed at $390/mt CFR, while a deal for 500 mt ex-UK material was reported at $385/mt CFR, the sources said.
“There is a slight increase in prices with sellers facing challenges in aggregating volumes and so they are quoting higher. It is still too early to call it a reversal of the recent downtrend, as buyers overseas are heard to be resisting the price increases,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“In the local market, the mood is cautious. The weak currency and higher prices have significantly pushed up landed prices. At the same time, the rebar market is weak and secondary mills lack confidence as regards restocking imported raw materials. We expect low trade volume activity to continue until the end of November, that is until after the festival holidays,” he said.