Import scrap prices in India have remained largely unchanged over the past week, but buyers have continued to shy away from concluding trades from nervousness over the weakening of rebar prices, SteelOrbis has learned from trade and industry circles on Wednesday, March 10.
The sources said that, even though import offers have trended sideways and the price surges seen earlier have eased off, most local buyers from secondary steel mills are still risk-averse to restocking raw materials amid uncertain rebar prices.
Sources said that a Maharashtra-based secondary steel mill has reported a stray deal at a price of $455/mt CFR Nhava Sheva port in the west of India for ex-US containerized shredded scrap. This compares to the tradable level of $455-460/mt CFR a week ago, but there has not been any significant change in the lack of activity in the market.
At least two traders said that a deal at a high of around $470/mt CFR was heard for ex-UK containerized shredded scrap, but no confirmation was available in the market.
“India and Pakistan are a bit of an outlier in the international market which is seeing sustained demand even at higher scrap prices. Indian secondary mills are under a lot of pressure to keep rebar prices in check and hence are unwilling to take risks in restocking raw materials,” a member of the Metal Recycling Association of India (MRAI) said.
The lack of buying interest has been reflected in the local scrap market with prices remaining largely unchanged over the past week. Scrap prices have been maintained at INR 39,500/mt ($541/mt) ex-stockyard at Mandi Govindgarh in the north and are unchanged at INR 33,250/mt ($442/mt) ex-stockyard at Alang in the west.