Import scrap prices in India have showed a mixed trend in the past week, with higher offers for shredded and slightly lower multiple offers for HMS scrap, but trading activity has been sluggish, following low bids submitted by buyers amid uncertain finished steel prices in local markets, SteelOrbis has learned from trade and industry circles.
Offers for ex-UK containerized shredded scrap price have risen from $370/mt CFR to $372/mt CFR Nhava Sheva port, while ex-Europe offers are at around $374/mt CFR. No fresh deals have been reported for shredded, with most bids still hardly above $365/mt CFR.
The sources said that sellers have been attempting to increase offer levels, reacting to the tentative rebound in scrap prices seen in bellwether global markets, but bids are still low due to weak domestic finished steel prices and expectations that the uptrend in the global markets will be limited in the face of resistance from buyers in key destinations.
The SteelOrbis reference price for shredded scrap in India has inched up by $4.5/mt on average over the past week to $365-374/mt CFR.
At the same time, multiple offers have been reported for HMS I/II (80:20) scrap and activity for this grade has been higher amid the higher flexibility of sellers. Ex-UK HMS scrap has been offered at $345-350/mt CFR compared to $350-360/mt CFR a week earlier, while ex-Brazil HMS scrap offer has been reported at $345/mt CFR Mundra port in the west.
According to sources, a deal for 24,000 mt ex-Mozambique HMS scrap was reported at $348-350/mt CFR Kandla port in the west.
“Buyers are mostly on the sidelines claiming that offers are too high and not commensurate with finished steel prices. Induction furnace operators are still preferring local sourcing amid lower prices,” a Mumbai-based trader said.
According to sources, local scrap prices have moved down by INR 400/mt ($5/mt) to INR 34,000/mt ($398/mt) ex-Mandi Govindgarh, with some sellers offering additional volume-based discounts of up to four percent.