Import scrap prices in India have been kept stable over the past week, with sellers taking their cue from improvements seen in global bellwether markets, but buying has remained muted and the tentative buying seen early in the week was nipped in the bud by nervousness over deliveries following Houthi militants’ attack on vessels and the uncertain long-term impact on shipping, SteelOrbis learned from trade and industry circles on Wednesday, July 9.
Sources said that ex-UK/Europe containerised shredded scrap offers have been kept stable at $360-365/m CFR Nhava Sheva port in the west, with bids still reported at not above $355/mt CFR, resulting in stalled negotiations.
Similarly, offers for HMS I/II (80:20) of UK origin are at $335-340/mt CFR. The early-week optimism of revived trading was triggered by a deal reported by a Gujarat-based secondary mill operator-cum-scrap trader for a tonnage of 2,000 mt at $335/mt CFR Kandla port, sources said.
A section of market intermediaries termed the trade as “stray”, while others claimed that the sinking of a vessel following attacks by Houthi militants set off a lot of nervousness among both buyers and sellers and the market has yet to assess firmly the long-term impact of the attacks on shipping and deliveries of trade in steel-related products along the sea routes through the region.
At the same time, a number of market participants in trade as well as mills observed that the muted trade activity was more a definite reflection of sustained losses in prices suffered in the long products market and secondary mills considering output cuts, resulting in declining raw material demand.
With output cuts, there has been sufficient supply of more competitively-priced local scrap to meet lower raw material demand. Sources said that bulk scrap prices have edged down INR 300/mt ($3/mt) to INR 32,700/mt ($380/mt) ex-Mandi Govidgarh, being a preferred alternative to imports, the sources said.