Imported shredded scrap prices in India have declined amid a combination of low demand following weakness in the local rebar market and the fall in domestic scrap prices, with small-volume deals reported only for imported bulk HMS scrap, SteelOrbis learned from trade and industry circles on Wednesday, February 16.
The containerized shredded scrap price is down $10/mt on average over the past week to around $535/mt CFR Nhava Sheva. Though most suppliers have still been voicing offers at $540/mt CFR minimum, buyers have been reluctant to purchase.
According to the sources, most of the limited trades were restricted to bulk HMS I/II (80:20) of Gulf origin.
One deal for 20,000 mt bulk scrap was heard at $490-494/mt CFR by a central India-based secondary mill. Another ex-Gulf bulk scrap trade for 10,000 mt was reported by an eastern India-based secondary mill at $494-498/mt CFR Haldia port, the sources said.
This translated to a landed cost of around INR 39,000/mt ($515/mt) inclusive of port and transport charges, while local scrap price have lost INR 1,500/mt ($20/mt) to INR 40,000/mt ($529/mt), and the narrow price differential has kept import trade at a low level, trade circles pointed out.
“The new weakness in the rebar market is keeping secondary mills away from imports of shredded scrap and there is more focus on local sourcing of bulk scrap,” a Mumbai-based scrap dealer said.
“There is also price uncertainty over shredded scrap. There is a lot of talk from sellers of pushing up prices. But trades at higher levels will depend on how local prices move. As of now, elections in major northern Indian states, the hub of the scrap trade, is keeping prices and trading low. Buyers are waiting for a new price trend to emerge after the state elections are over on March 10,” the dealer said.
$1 = INR 75.60
