Import scrap prices in India have softened over the past week, but trade activity has fallen silent as sellers are heard to be reluctant to push deals at lower levels, while the deepening of bearish conditions in the long products market has increased buyers’ nervousness over raw material restocking, SteelOrbis has learned from trade and industry circles on Wednesday, May 5.
Ex-Europe containerized shredded scrap offers have been reported in the range of $425-430/mt CFR, against around $430-435/mt CFR a week ago. Ex-Europe HMS (80:20) scrap prices range at around $418/mt CFR, $2/mt lower than a week ago, while the same grade of West African origin has been offered at $422/mt CFR.
But no deals have been reported in the wake of extremely weak finished steel demand and secondary mills considering the difficult option of production cuts in reaction to further declines in rebar prices, ruling out restocking of raw materials at present, the sources said.
“Even though the import scrap market has not yet touched a bottom, sellers are heard to be withdrawing offers and are unwilling to deal below the $430/mt mark. But imported scrap is not a viable option for induction furnace operators when local sponge iron prices are falling and margin realizations from rebar are close to negative,” a Mumbai-based trader said.
“We have two clients seeking bookings of aggregate 15,000 mt of mixed scrap in a price band of $400-415/mt CFR, but we do not think finding a seller at such a low level even in the current downtrend is feasible. ‘Bottom fishing’ is not an option for buyers as there are far fewer sellers active and submitting offers in the sub-continent,” he said.