Import scrap prices weaken in India, stronger correction may trigger restocking

Wednesday, 10 November 2021 14:22:21 (GMT+3)   |   Kolkata

India’s imported ferrous scrap prices have trended lower, responding to muted trading activity during the festival holidays last week and amid wavering global prices, but a further correction is expected to trigger restocking by secondary mills facing local prices at historical peaks, SteelOrbis has learned from trade and industry circles.

Containerized shredded scrap prices have been reported in the range of $552-558/mt CFR Nhava Sheva port in the west, down from offer levels of $558-562/mt CFR a week ago.

An ex-UK bulk heavy melting scrap (HMS) I/II 80:20 price was reported at $510-520/mt CFR Haldia port in the east, down about $5/mt from last month, with an eastern India-based secondary mill heard to have concluded a deal for 25,000 mt at around  $515/mt CFR, the sources  said.

“We assess that, if the correction gains momentum, a target price of $500/mt CFR can trigger strong restocking by secondary mills once business activity picks up in the coming week as mills are low on raw materials,” an official at a Gujarat-based secondary mill said.

“The local ferrous scrap price is maintaining a 10-year peak. Large volume buyers will move towards imported scrap while small volumes will be sourced locally at a higher price,” he said, though cautioning that the slight correction in local prices of semis could offer a headwind for the raw material restocking of secondary mills.

Scrap prices in the local market edged down INR 300/mt($4/mt) to INR 40,700-41,700/mt ($550-563/mt) ex-Mandi Govindgarh in the north, but still close to a 10-year high.

According to market sources, a Raipur-based secondary mill in central India was heard to have concluded a trade for shredded scrap at around $555-558/mt CFR Kandla port in the west.

$1 = INR 74.00

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