Import scrap prices in India have been rather stable over the past week with trades limited amid buyers’ expectations of prices softening and sufficient local raw material sourcing, SteelOrbis learned from trade and industry circles on Wednesday, April 9.
Offers for ex-UK/Europe containerised shredded scrap are unchanged from the previous week at $390-395/mt CFR Nhava Sheva port in the west. Early in the week, some sellers were heard to be adjusting offers to $388/mt CFR at the lowest to push trades, but buyers persisted with bids at least $5-7/mt lower, preventing any successful deals, the sources said.
The reference price for Indian import shredded scrap has remained stable so far at $385-390/mt CFR.
Offers for HMS I/II (80:20) scrap of UK origin have also been kept stable, at $365-375/mt CFR, but, despite the rebound in finished steel prices, secondary mills have preferred domestic sourcing.
Local HMS scrap prices have softened by about INR 600/mt ($7/mt) to INR 34,900/mt ($405/mt) ex-Mandi Govindgarh with additional volume discounts in the range of two to three percent offering a more viable option to secondary mills.
Local sponge iron prices are also down, by INR 200/mt ($2/mt) to INR 32,100/mt ($373/mt), offering further options to mills.
“With the long products market performing well amid robust demand and prices, secondary mills are more confident on raw material restocking. But the preference continues to be local sourcing. The impact of tariffs on steel and therefore scrap markets is uncertain. But expectations are that the impact will lead to a drop in price. Local buyers, therefore, are submitting low bids even if deals are not working out,” a Mumbai-based ferrous and non-ferrous trader said.