Import scrap prices in India are almost stable week on week, while the bid-offer gap has resulted in near silent trade conditions even though finished steel prices have been on a recovery path, but secondary mills still lack confidence in terms of concluding import trades for raw materials, SteelOrbis learned from trade and industry circles on Wednesday, August 5.
Ex-Europe/UK containerized shredded scrap offers have been kept stable at $395/mt CFR Nhava Sheva port in the west. A few bids were reported at $380-385/mt CFR, but sellers have been unwilling to adjust prices and push deals, citing tight supplies.
Similarly, offers for HMS I/II also of UK origin are stable in the range of $335-340/mt CFR, but low bids reported at around $320-325/mt CFR have stalled any successful deals, sources said.
It was pointed out that finished long steel product prices are on a recovery path but gains in prices are still not sufficient to absorb high-cost imported raw materials. Secondary mills are still operating at lower-than-average capacity utilization levels and producers have been taking advantage of the price rebound to liquidate inventories at improved margins rather than increase output significantly, and hence raw material demand still remains muted.
“Mills have increased inquiries but are still cautious about committing to import trades. There is a lack of confidence over the direction of the market. Local supplies to meet the limited raw material demand is still being preferred rather than taking on the import trade risks of currency and hedging,” a Mumbai-based ferrous and non-ferrous trader said.
