Indian imported scrap prices showed signs of strengthening and although actual trades remained silent, recent rebound in local billet and rebar prices prompted more buyers to initiate negotiations with deals expected in January, SteelOrbis learned from trade and industry circles on Wednesday, December 31.
Sources said that the surge in price of billets and finished long products sustaining over two consecutive weeks instilled confidence among induction furnace operators to overcome nervousness over local currency depreciation and initiate negotiations with sellers heard to be submitting higher offers.
For example, ex-UK/Europe containerized scrap offers were quoted in the range of $350-352/mt CFR Nhava Sheva port in the west compared to $346-348/mt CFR a week ago. Some other origins were on offer at up to $355-357/mt CFR for shredded. The Indian reference price has been increased to $350-355/mt CFR versus $346-352/mt CFR last week.
At the same time, ex-UK HMS I/II (80:20) offers were at $325-330/mt CFR compared to $320-323/mt CFR a week ago.
There was market optimism that these deals could be finalized in early January, the sources added.
“The revival of the domestic steel market coupled with tightening of local scrap supplies is triggering more interest in imports. The prolonged silent import trade conditions are likely to be broken in January when deals will be worked out. The local currency is also showing signs of some stability and hence bring matching stability in landed price of imports which is an additional positive,” a Mumbai based distributor said.
“However, we expect to see most of the import activity to be confined to HMS scrap for which acceptable workable price can be finalized faster,” he added.
