The Indian scrap import market continued to remain in a limbo during the past week and even slight softening of shredded scrap prices failed to trigger any buying interest from secondary steel mills, reeling from low capacity utilization and weak rebar prices, SteelOrbis learned from trade and industry circles on Wednesday, August 25.
Containerized shredded scrap prices sought lower level of $515/mt CFR Nhava Sheva port in the west compared to $512-520/mt CFR a week ago, but trading was poor as prices were still unattractive for generally financially weak secondary mills to risk import transactions, including depreciating local currency against the US dollar.
“Most secondary mills are reporting stock build-up of rebar and low capacity utilizations, which precludes any restocking of raw materials. Locally sourced sponge iron is preferred for raw material requirement. Scrap traders are also not willing to risk trades as any demand revival seems bleak in the short term,” a Gujarat based secondary mill operator and scrap trader said.
“We hear a lot of material is being diverted to neighbouring Pakistan, where prices are higher at $530/mt CFR Port Qasim minimum. Neither buyers nor sellers are active in the Indian market and traders are carrying a lot of unsold stocks,” he added.
Sources said that a trade for bulk cargo of HMS I/II (80:20) was reported by an induction furnace operator in Raipur in the central region at $470/mt CFR. Though overall sentiment is weak, this price level is more than $10/mt higher than the previous contract for the same grade reported a week ago.