Import scrap prices in India have continued to soften over the past week but are still higher than acceptable prices for buyers faced with weakening finished steel prices and more competitive local supplies to meet the limited raw material demand from secondary mills, SteelOrbis learned from trade and industry circles on Wednesday, July 1.
Sources said that ex-UK/Europe containerized shredded scrap offers are reported at $383-386/mt CFR Nhava Sheva port in the west, compared to $385-390/mt CFR a week ago, but bids much lower at $370-375/mt CFR have not been acceptable to sellers, leading to silent trade conditions.
Similarly, European origin HMS I/II offers have been reported at $335-340/mt CFR, compared to $340-345/mt CFR, but bids are around $15/mt lower, but no deals have been reported.
Sources said that a deal for an estimated 2,000 mt of South African origin LMS (light melting scrap) bundled was done at $305-308/mt CFR.
Market participants said that secondary mills are under increasing pressures from finished steel prices and rising inventories during the ongoing monsoon season, and have preferred local sourcing to meet their limited raw material demand, extending the prolonged lack of trade for imports.
“At a time when the local market in under pressure and margins are tight, secondary mills do not have any appetite to take on additional risks typical in import transactions. Moreover, requirements for small tonnages are not amenable for import transactions. Sellers are unwilling to adjust offers for such small volumes,” a Mumbai-based ferrous and non-ferrous scrap trader said.
