Imported scrap prices in India have strengthened over the past week with buyers returning to the market. At the same time, while the mood is more buoyant and more deals were reported ahead of the further gains in import scrap prices, the sustainability of buying remains in doubt as the revival in the rebar trade is still tenuous and secondary mills are still facing a liquidity crisis, which would prevent them from aggressively restocking raw materials.
According to sources, a trade for 1,500 mt ex-Europe containerized shredded scrap was confirmed by a trading firm at $443/mt CFR Nhava Seva port, higher than offers heard a week ago at $425-430/mt CFR. Besides, a secondary mill has also confirmed a booking of 2,000 mt ex-Europe containerized shredded scrap at $445/mt CFR, the sources said.
Meanwhile, a booking of 2,500 mt ex-West Africa HMS I/II 80:20 scrap in bulk was reported in the market at $428/mt CFR Kandla port in the west, compared to offers heard at around $418/mt CFR last week.
Several in trade circles said that they heard offers as high as $460/mt for ex-Europe PNS (plate and structural scrap), but no confirmation of any deals has been available in market circles.
“Imported scrap prices will now trend upward. There are more buyers getting active across Asian markets and there is a slight tightening of supplies,” a Mumbai-based ferrous and non-ferrous trader said.
“However, the moot question remains the ability of local secondary mills to restock raw materials at higher levels. Rebar prices have recovered but not too much yet to give producers any comfort on margin realizations. Most mills are still facing challenges of adequate working capital funding from lending institutions. These elements are likely to keep import trade at a lower level,” he said.