Import scrap prices in India have remained under pressure this week amid a combination of still lower bids, finished steel prices entering a new down cycle, and geopolitical tensions and threats of military conflict in the subcontinent, all of which have prevented deals from working out, SteelOrbis learned from trade and industry circles on Wednesday, May 7.
Offers for ex-UK/Europe containerised shredded scrap were mainly at $370/mt CFR Nhava Sheva port, compared to $370-373/mt CFR a week ago, but with bids softened to $360-365/mt CFR. Only a few negotiations have been heard at $360-365/mt CFR, and so the reference price has slipped by $2.5/mt over the past week to $360-370/mt CFR.
Offers for HMS I/II (80:20) of UK origin are in a wide range of $350-360/mt CFR compared to the range of $345-350/mt CFR reported a week ago, but buyers have been unwilling to accept anything higher than $345/mt CFR, leading to inactive trade conditions.
“Geopolitical tensions between India and Pakistan and fears of an escalation of military conflict between the two countries are creating a lot of nervousness in the market. Coupled with finished steel prices seeking new lower levels, mills are not in the mood to restock raw materials,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“International scrap prices are showing signs of improvement and hence sellers are unwilling to adjust prices to push sales. We do not see much activity in the imported scrap trade and mills will continue to meet limited requirements through local sourcing,” he said.