The Indian imported scrap market showed some degree of volatility with prices consolidating above the $500/mt mark, but falling back on buyers' retreat and resistance resulting in overall quiet conditions, SteelOrbis learned from trade and industry circles on Wednesday, August 24.
While most global markets remained quiet, sellers were attempting to push up prices across the sub-continent anticipating supplies to tighten in the US and the EU regions as holiday season nears to the end. But at the same time buyers were unwilling to commit bookings at higher levels unsure if the current finished steel market would absorb higher raw material prices.
According to the sources and leading traders, ex-EU and ex-UK shredded scrap offers reached the highest $510-515/mt CFR Nhava Sheva port in the west, slightly higher than tradable level at $505/mt CFR reported a week ago, but fell back to $490-500/mt CFR by now.
The sources said that a western India based secondary mill was successful in concluding a booking for 5,000 mt at around $500/mt CFR towards close of last week, while no trades were reported above since then.
Two other trading firms acting as a consortium reported a booking for ex-EU containerized shredded scrap at $495/mt CFR, the sources said.
Another trade for 8,000 mt ex-West Africa HMS I/II (80:20) was reported in the market at $463/mt CFR Nhava Sheva by a Mumbai based trader, the sources said.
“The volatility is stemming from the divergent outlooks of buyers and sellers. Buyers in Asian region do not think weak finished steel prices will support an increase in raw material prices. But sellers are taking a contrarian view based on expectations of revived buying in Turkey and the EU,” a Mumbai based ferrous, non-ferrous trader said.
“The fall in domestic bulk scrap price by around INR 1,000/mt ($13/mt) and sponge iron by INR 500/mt ($6/mt) also attributed to secondary mills to exercise caution in the import market,” he said.