India’s imported scrap prices have increased over the past week, but early this week prices have posted some declines, following slowdown in Turkey and weak demand in the South Asian region, SteelOrbis has learned from trade and industry circles.
Ex-Europe containerized shredded scrap offers have come down to $470-480/mt CFR, compared to deals concluded at $475-490/mt CFR a week ago. Indicative prices for ex-UK containerized shredded scrap were reported at $490/mt CFR, but no deals were concluded and the sources said that the price does not reflect the current market this week. Demand has slowed down visibly this week in India.
“A clearer picture on the price trend will emerge in another week or so. Local buyers are keeping a close watch on Turkey’s import trade, which will set a medium-term trend in the region,” a Mumbai-based ferrous and non-ferrous metal trader said.
Source said that ex-Dubai HMS I price has remained high, at $475/mt CFR Nhava Sheva port in the west, but offers for ex-Europe and West African HMS (80:20) were reported at $445-455/mt CFR, almost in line with last week.
“The ban prolonged by the UAE, a major source for local Indian traders and mills, may tighten supplies for some time, as in 2020 when the UAE imposed a similar four-month ban on exports. The industry estimates that about 0.5 million mt of ferrous scrap was sourced by Indian buyers in 2022,” an Indian source said. But most market participants believe that the effect from the ban in the UAE will be very small if any. “It’s the same every year and yet trade of millions of tons happens,” a source from South Asia said, adding that most traders are going from “free zones”.