Import scrap prices have weakened in India in the past week amid global cues and buyers preferring to wait for more clarity on the pricing trend and demand, SteelOrbis has learned from trade and industry circles on Wednesday.
The sources said that the absence of the expected upturn in rebar demand also prompted most secondary mills to defer new contracts, also because cargoes in previous deals had not yet arrived at ports.
Ex-Europe containerized shredded scrap prices are $450-455/mt CFR Nhava Sheva port in the west, down from $470-475/mt CFR a week ago and $10/mt below offers heard last Friday.
Ex-EU HMS 80:20 prices have been reported at $440/mt CFR.
Trade circles said that, among the limited bookings, was a tonnage of 1,000 mt by a local trader for ex-EU shredded scrap at $450-455/mt CFR. No offers were reported from the Gulf region over the past week
A secondary mill has concluded a deal for 5,000 mt of ex-Europe HMS I/II scrap at $440-450/mt CFR Kandla port in the west.
“Globally the scrap market is showing a fundamental weakness in demand as reflected in the bellwether market in Turkey. In the local market, there are too many negatives from unpredictable weather conditions in several regions, lower-than-expected demand in the rebar market and a fresh surge in inflation data, prompting secondary mills to be very cautious in locking up funds in raw material inventories,” a Mumbai-based ferrous and non-ferrous trader said.
“Steel demand is not growing in India and Western geographies although for different reasons. In India, the steel demand forecast is negative following dismal industrial growth figures over the past four months. In Western geographies, steel prices will rise from higher energy costs and demand, and output will fall. Scrap prices will remain under pressure. Buyers will continuously wait for a new bottom before committing low-volume bookings,” he said.