Import scrap prices in India remained range-bound amid subdued trading conditions on low demand and more induction furnace increasing reliance on local sourcing of sponge iron as feedstock to ensure carrying lower imported raw material inventories, SteelOrbis learned from trade and industry circles on Wednesday, September 22.
Containerized shredded scrap prices in India remained at $515-520/mt CFR Nhava Sheva port in the west, but only a couple of trades were reported over the past week at the lower end of the range.
More significantly, the sources said that fewer sellers were submitting offers in the region following softening of acceptable prices in neighbouring Pakistan. They said that in contrast to previous weeks, where trading in Pakistan was buoyant at higher prices, recent deals were only for small tonnages and at price of $520-525/mt port Qasim in Pakistan first and then at $515-520/mt CFR lately, down from $530-540/mt CFR earlier in September.
Fewer active sellers both in India and Pakistan and buying largely limited to stray small volume deals, market activity fell over the past week, the sources added.
“Apart from low demand from Indian induction furnace operators, buyers in the region were expecting rebar prices to continue to remain soft keeping conversion spreads minimum and furnace operators were unwilling to commit to risks of import trades and restock raw materials,” a Gujarat based secondary steel mill cum ferrous scrap trader said.
Sources said that a secondary mill in Raipur in central region reported a trade for ex-US shredded scrap at $510-515/mt CFR Kandla port.