Import scrap prices in India have remained largely stable but have been showing an upward bias with sellers quoting slightly higher prices and buyers active but concluding deals at lower levels, indicating resistance to price increases, SteelOrbis learned from trade and industry circles on Wednesday, March 26.
Sources said that containerized shredded scrap offers of UK/Europe origin are at $392-397/mt CFR Nhava Sheva port in the west, about $2/mt higher week on week, but most deals have been concluded only after a moderate price adjustment.
For example, according to the sources, a western India-based induction furnace operator cum ferrous scrap trader reported a booking of 1,000 mt of UK origin shredded at $392/mt CFR Kandla port against an initial offer of $395/mt CFR.
A Gujarat-based secondary mill reported a booking for 2,000 mt of shredded scrap at $390-392/mt CFR, the sources said.
Another trade for estimated tonnage of 2,000 mt was confirmed by an eastern India-based mill at $388/mt CFR Haldia port but the origin of the tonnage could not be ascertained.
The SteelOrbis reference price has settled for shredded scrap at $388-392/mt CFR, versus $385-392/mt CFR last week.
Similarly, ex-Europe HMS I/II (80:20) scrap prices have been quoted in the range of $362-370/mt CFR, about $2-5/mt higher over the previous week, but a few deals have been reported after a price adjustment, such as for a deal for 2,000 mt at $368/mt CFR, against an initial offer of $370/mt CFR, the sources said.
“There are two positive contributory factors… the strong long products market and the Indian rupee appreciating against the US dollar have instilled greater confidence among buyers to restock imported raw material. But deals are only being concluded after sellers are adjusting the price, indicating resistance and a cautionary mood among buyers,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“It may be noted that an alternative like sponge iron is showing a declining trend, losing around INR 200/mt ($2/mt) over the past week and its sufficient domestic availability is expected to limit the upsides of imported scrap trade volumes and prices,” he said.