Indian imported scrap prices got on to a downtrend over the past week but lower prices failed to trigger buying with secondary mills already stressed by weak rebar prices preferred to wait for a correction to deepen before considering raw material restocking, SteelOrbis learned from trade and industry circles on Wednesday.
Containerized shredded scrap offers were heard at the range of around $530-540/mt CFR Nhava Sheva port higher than $520-530/mt CFR a week ago. However, prices slumped towards thereafter to range of $500-520/mt CFR but no significant deals were reported in the market barring one stray trade, as secondary mills were challenged by low rebar prices and depreciating Indian currency against the US dollar.
“Globally scrap prices are seeking lower levels. Prices are week in bellwether market of Turkey and demand is very weak in Vietnam. But prices are still too high for Indian secondary mills facing risks of cutting rebar prices further and weak local currency limited impact on landed price of imported scrap even at current lower prices,” an official from an eastern Indian based electric arc furnace route mill said.
“Given weak rebar demand, prices and weak local currency, our assessment is secondary mills will look at restocking imported raw material only if prices correct to below $490-500/mt CFR,” he added.
However, at least one trader maintained that despite overall weakening of scrap prices in most major markets, imports into Pakistan remained strong with reports received here indicating buyers in the country accepting valuations in range of $540-550/mt CFR Port Qasim, which could limit the correction in the region.
Sources said that the only stray deal during the past week was reported by a Gujarat based secondary steel mill cum trading firm for shredded scrap at price of around $500-510/mt CFR Kandla port.