Import scrap prices in India have continued to seek lower levels with the market slowing down for year-end consideration, with fewer sellers submitting offers, and secondary mills awaiting some consolidation in rebar prices before concluding bookings, SteelOrbis learned from trade and industry circles on Wednesday, December 29.
The tradable level for shredded scrap in containers is at $525-532/mt CFR Nhava Sheva port in the west over the past week, lower than $530-540/mt CFR a week ago.
“Though the market has slowed down for the year-end, two positives have indicated a revival of trading activity in the new year. Firstly, prices are yet to bottom out as indications are that ex-US prices will face pressures from higher supplies in January. On the demand side, local secondary mills are just waiting for improved rebar prices to consolidate higher, to start restocking raw materials. The combination of these two makes us expect higher trading activity next month,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“A close watch is on bellwether market Turkey, where, despite low activity, a section of the market maintains that prices have bottomed out. As business restarts after the holidays and more market participants return, a new price trend will emerge and local secondary mills may be successful in nudging up rebar prices,” he said.
A Maharashtra-based steel mill reported a trade for 20,000 mt at $530-532/mt CFR for February shipment last week. But the latest bids were hardly above $525/mt CFR.
Meanwhile, in the local market, scrap prices have trended lower as sentiments have been impacted by reports that the authorities implementing the Goods and Service Tax (GST) clamped down on some traders for undisclosed transactions. Scrap prices have edged down by INR 300/mt ($4/mt) to INR 37,900-38,200/mt ($505-509/mt) ex-warehouse at Mandi Govindgarh in the north.
$1 = INR 75.00
