Import scrap prices in India have remained range-bound over the past week, but buyers have remained on the sidelines owing to weak raw material demand at a time of oversupply and weak finished steel prices, and with secondary mills preferring local sourcing to meet small-volume requirements, SteelOrbis learned from trade and industry circles on Wednesday, July 8.
Sources said that ex-UK/Europe containerized shredded scrap offers have been reported in the range of $380-386/mt CFR Nhava Sheva port in the west, compared to $383-386/mt CFR a week ago. No offers were submitted for HMS I/II during the past week, from a lack of active sellers.
According to the sources, a large local trading firm reported a deal for 3,000 mt of light metal scrap (LMS) bundled of African origin at $290-295/mt CFR Mundra port in the west, compared to an import of a similar grade in the earlier week at $305-308/mt CFR.
“Secondary mills are under triple pressures of weak prices, rising costs of production and higher inventories. Requirements of raw material with plants operating at lower levels are also reduced. Hence, few mills are willing to risk raw material restocking through import trades,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“We do not see any improvement in import interest as steel demand will remain low during the ongoing monsoon season. Local sourcing will remain a preferred option,” he added.
