Import scrap trade activity in India has fallen relatively quiet and prices have retreated with the market expecting secondary mills to resume fresh stocking soon against the backdrop of the rapid movement of construction steel stocks, SteelOrbis learned from trade and industry circles on Wednesday, January 25.
The reference price for ex-Europe shredded scrap in India has come to $450-455/mt CFR, versus $460-465/mt CFR two weeks ago. According to the sources, among the few deals was a booking for 5,000 mt of ex-Europe containerized shredded scrap at $455/mt CFR Nhava Sheva port in the west, while another trade was rumoured at $450/mt CFR. Among the reasons behind the recent price decline were the drop seen last week in Turkey and the relatively high offer volume in the South Asian region, taking into account of the almost full halt of trading in Pakistan due to LC issues.
“The recent lack of activity is because Indian mills are sufficiently stocked but they are expected to return to book new tonnages as they are operating at optimal levels and stock drawdowns are fast as construction grade steel demand is getting strong,” a Mumbai-based scrap trader said.
“US sellers have been absent with bulk scrap offers since last week, possibly awaiting better prices,” he said.