Import scrap prices in India have continued to slip in the face of weakening demand from sliding finished steel prices, the overall industrial slowdown with the spread of the monsoon rains, and secondary mills being able to meet limited demand from cheaper local alternatives, SteelOrbis learned from trade and industry circles on Wednesday, June 11.
Sources said that ex-UK/Europe origin containerised shredded scrap has been quoted in the range of $360-365/mt CFR Nhava Sheva port in the west compared to $365-370/mt CFR a week ago. However, with bids for even small tonnages reported at a low of $355/mt CFR, no deals have been concluded during the week in review. The SteelOrbis reference price has ettled at $360/mt CFR this week.
Similarly, offers for HMS I/II (80:20) of UK-origin are at $340-345/mt CFR, losing $5/mt over the past week, but bids have fallen to $330-340/mt CFR, with no trades confirmed.
The sources said that, with local scrap almost stable at INR 33,300/mt ($389/mt) and sponge iron sliding INR 500/mt ($6/mt) to INR 29,300/mt ($343/mt) ex-Mandi Govindgarh, secondary mills have had multiple more viable raw material sourcing options even to meet their falling demand.
“The market has been marked with the presence of very few sellers and buyers. Globally, the scrap trade has been subdued in recent weeks. Indian secondary mills are not inclined to import raw materials. Prices and currency risks are too high. Finished steel prices are weak and the market is not able to absorb higher imported raw material prices. Raw material demand from mills operating at lower capacities can well be met from cheaper local sources,” a Mumbai-based trader said.