Import scrap prices in India have showed marginal changes amid a slowdown in trading conditions with buyers moving to the sidelines reacting to the weakness in the long product market and IF mills heard to be reducing outputs, SteelOrbis learned from trade and industry circles on Wednesday, June 21.
The SteelOrbis reference price for import shredded scrap in India has been reduced to $425-430/mt CFR, versus $430-440/mt CFR.
Last week, a booking for 1,500 mt of ex-Europe containerized shredded scrap was confirmed by a Mumbai-based trader at $438/mt CFR Nhava Sheva port in the west, which was in line with the reference prices at $430-440/mt CFR at the time. But this week, seeing no demand, suppliers have cut offers to $430/mt CFR, and some are ready to give additional discounts, but the problem is a lack of bids in general.
“Secondary mills are busy with stock liquidation and are planning production cuts for the lean rainy season period. Hence, there is not much attention on raw material restocking,” a Mumbai-based ferrous and non-ferrous trader said.
“There has been some dislocation in port operations along the western coast from Cyclone Biporjoy and several vessels' arrivals have been delayed. Hence, sellers have also taken a pause in confirming bookings until existing contracts are completed,” he said.
Another market participant attributed the slowdown to a section of dealers pulling out ahead of the approaching Eid holiday and being unwilling to increase inventories at the close of the month.