Import scrap prices in India have remained under pressure in reaction to weak finished steel prices during the monsoon season and since secondary mills have more cost-effective alternatives like scrap and sponge iron from local sources, SteelOrbis learned from trade and industry circles on Wednesday, June 4.
Sources said that ex-UK origin containerised shredded scrap offers have been reported in the range of $365-370/mt CFR Nhava Sheva port in the west, compared to $370-372/mt CFR a week ago. The tradable level has remained stable from last week at $365/mt CFR on average, with at least two small-volume deals done at $365-367/mt CFR, though overall trading has been poor.
Offers for HMS I/II (80:20) of UK origin are unchanged at $345-350/mt CFR but, with bids heard at lows of $335/mt CFR, no trades have been confirmed this week after small transactions at this level late last week, the sources said.
“Fundamentals are weak both on the supply and demand sides. Finished steel prices, particularly for construction grade long products, are in a prolonged bearish phase as long as the monsoon season lasts,” a Mumbai-based ferrous and non-ferrous trader said.
“Secondary mills are preferring to meet their limited raw material requirements locally where prices of scrap and sponge iron are becoming more attractive and sellers are offering discounts based on booking volumes,” he said.
Sources said that local HMS scrap prices have lost INR 500/mt ($6/mt) to INR 33,200/mt ($387/mt) ex-Mandi Govindgarh in the north, with sellers continuing to offer volume-based discounts in the range of 2-4 percent on invoice prices.
Similarly, the price of another alternative like sponge iron is down INR 300/mt ($3/mt) to INR 29,800/mt ($347/mt) ex-Mandi Govindgarh, the sources said.
$1 = INR 85.83