Imported scrap prices in India have recorded significant gains during the past week even though limited deals have been reported in the market, SteelOrbis learned from trade and industry circles on Wednesday, April 7.
Sources said that, more than the price, the uncertainty over delays by shipping lines and sellers concluding longer-than-normal deliveries have kept a number of Indian buyers away from concluding trades. They said that several buyers have been unwilling to take delayed deliveries beyond the end of May, fearing that more regional lockdowns would impair their ability to clear port arrivals and further transportation.
However, several market participants said that the perception that imported scrap prices have bottomed out at least in the near term and planned base price increases across long and flat products have enabled local secondary mills to be more confident about absorbing higher raw material prices.
Over the past week, ex-US containerized shredded scrap prices have ranged at $430-450/mt CFR Nhava Sheva port in the west compared to $415-430/mt CFR a week ago. However, according to market reports, only two trades have been reported in the market and offers for June-July delivery have largely not been acceptable to local buyers.
The sources said that a secondary steel mill at Raipur in the central region has reported a deal for containerized shredded scrap at around $430-435/mt CFR Nhava Sheva port. Prices for this grade have increased to $450/mt CFR by the end of the week, but no deals at this level have been reported so far.
One trade for bulk HMS I/II 80:20 was reported by a Gujarat-based secondary steel mill cum trading firm at the average price of $410/mt CFR Kandla port in the west, but the tonnage could not be confirmed by the market.
Renewed restocking of raw materials in the local market has pushed up the scrap price at Mandi Govindgarh in the north by INR 1,000/mt ($14/mt) to INR 39,000/mt ($531/mt) ex-stockyard, while the price gained INR 750/mt ($10/mt) to INR 32,000/mt ($436/mt) ex-stockyard at Alang in the west.
$1 = INR 73.40