Import scrap prices in India have remained largely steady, but wide variations have been reported for stray concluded deals amid continued weak demand and declining rebar prices of secondary steel mills, SteelOrbis learned from trade and industry circles on Wednesday, September 15.
Sellers have been unwilling to offer discounts despite low trade activity because they were getting significantly higher realizations for sales in neighbouring Pakistan where demand for ferrous scrap has been significantly higher.
The sources said that ex-US containerized shredded scrap prices have been heard in the range of $515-520/mt CFR Nhava Sheva port in the west, stable from last week. In contrast, the sources pointed out that sellers have been securing a much higher sales price in the range of $530-540/mt CFR Port Qasim, Pakistan, as well as higher trading volumes, explaining the reluctance to consider Indian bids.
“Local scrap demand is continuing to remain weak even after the monsoon season ending. This is largely owing to the widening disparity of economics between integrated primary and secondary mills. Primary mills based on iron ore are seeing raw material prices falling, giving the advantage of lower costs of production. Hence, electric arc furnaces too have to keep their rebar prices low to remain competitive in the market, even though it is squeezing their capacity to restock raw materials - ferrous scrap, the price of which remains high,” a Kolkata-based secondary mill operator said.
Sources said that one deal has been reported during the past week for ex-US shredded scrap at a price of $525/mt CFR Kandla port.
In contrast, a second deal has been reported at a price of around $510-515/mt CFR Nhava Sheva port, with the sources attributing the low price to the relative small tonnage, while the supplier is not a regular seller in India.