Import scrap prices in India have recorded marginal gains over the past week amid sparse trading conditions with secondary mills largely staying on the sidelines, having completed their immediate restocking requirements, SteelOrbis has learned from trade and industry circles.
Containerized shredded scrap prices in India have inched up from $535-540/mt CFR to $540/mt CFR as, unlike the previous week, sellers were unwilling to adjust offers to push deals, while local secondary mills were deferring trades, perceiving Asian prices to be moving contrary to the overall outlook in the US, where indications are for prices to settle lower in February, putting pressure on export prices.
“Overall, a lull is setting in in scrap trading with the approaching Lunar New Year in China. Our assessment is that the global scrap market will show divergent trends once business activity resumes after the holidays in China. We consider that Asian markets will hold, with a slight hardening of prices in India and Pakistan. On the other side, prices can come under pressure in the US in February,” a Mumbai-based metal scrap trader said.
“Indian secondary mills have largely completed immediate restocking. Consolidation of rebar prices at higher levels and sharp surges in local sponge iron and heavy bulk scrap prices are expected to contribute to renewed scrap imports,” he said.
Sources said that, among the limited trades over the past week was a deal by a Raipur-based secondary mill for 5,000 mt of shredded scrap at around $540/mt CFR Nhava Sheva port in the west.
A deal for ex-UK bulk HMS I/II (80:20) of 8,000 mt was concluded by an eastern Indian mill at $480-490/mt CFR Haldia port, the sources said.
Meanwhile, in the local market bulk scrap prices continued to surge, gaining INR 1,000/mt ($13/mt) to INR 40,000/mt ($536/mt) ex-warehouse at Mandi Govindgarh in the north amid a combination of tightening supplies, sources said.
$1 = INR 74.56