Indian imported scrap edged lower and buyers remained on the sidelines unwilling to committee deals at a time when finished steel market was steadily weakening and trade risks rising after fresh flare up of regional tension in the Gulf of Hormuz, SteelOrbis learned from trade and industry circles on Wednesday, July 15.
The lowest containerized shredded scrap offer price settled across a wide range of $375-385/mt CFR Nhava Sheva port in the west, compared to $380-386/mt CFR a week ago. But this decline was mainly attributed to lower prices from sellers in Asia Pacific region, and some deals have been reported only for Australian origin material. Moreover, with higher freight rates, some European sellers have been almost absent seeing the market at above $390/mt CFR, and which is fully unworkable in India.
Some Asia Pacific offers for HMS I/II (80:20) were reported in the range of $330-335/mt CFR.
A few deals were reported for tonnages estimated at 2,000 and 3,000 mt of ex-Australia turning/boring scrap at prices ranging between $300-310/mt CFR Chennai port in the south.
Sources said that freight and insurance rates are spiking following breakdown of the Iran-US ceasefire agreement and buyers are unwilling to bear incremental costs at a time when finished steel prices are declining and secondary mills will not be able to pass on higher cost of imported raw materials to consumers.
“Imports have been made even more unviable by fresh geopolitical tensions in the Middle East. Demand for raw materials, particularly imported, is already at a low ebb as secondary mills are operating at lower capacities owing to inventory rise and weak prices,” a Mumbai based distributor said.
