Indian scrap import activity revived during the past week riding on strengthening of rebar prices in the local market overcoming slight volatility in imported scrap prices with upward bias, SteelOrbis learned on Wednesday.
According to sources, ex-US west coast HMS I/II 80:20 scrap prices increased by about $2-3/mt week on week to $262-272/mt CFR, but local secondary steel sectors were undeterred and higher number of bookings were reported in the market as recovery in rebar prices in the local market had emboldened higher restocking and increasing pace of capacity utilizations of electric arc furnaces across the country.
Sources said that a western Indian based secondary steel mill cum scrap trading firm concluded a contract for 18,000 mt of ex-US bulk HMS I/II 80:20 at $268-270/mt CFR Kandla port in Gujarat. A Mumbai based trading firm contracted bulk tonnage of 28,000 mt of ex-US scrap at estimated landed price of $270/mt CFR Kandla port on behalf of consortium of two secondary steel mills, sources said. The deal price last week was at $262-267/mt CFR.
Prices for shredded scrap also went up slightly. A Maharashtra based secondary steel mill contracted 22,000 mt of containerized shredded scrap from the US at $272-275/mt CFR Nhava Sheva port in the west. Most offers were close to $280/mt CFR Nhava Sheva and above, while last week most suppliers offered at $275-279/mt CFR.
“Initial weakness in imported scrap prices in India proved to be short-lived in view of tight supplies from ban on exports from South Africa and UAE. Prices bounced back also supported by reports of renewed buying in Turkey towards close of the week. Local secondary mills resumed fresh bookings anticipating very limited downside potential of prices in the near term and urgency in maximizing plant capacity utilizations now that rebar prices were seen to be consolidating at higher levels,” a member of Metal Recycling Association of India (MRAI) said.
The mood to restock among secondary steel mills was also reflected in scrap prices edging up in the local market. Prices gained INR 300/mt ($4/mt) to INR 22,100/mt ($293/mt) ex-stockyard at Mandi Govindgarh in the north. Prices were up INR 200/mt ($3/mt) to INR 21,000/mt ($279/mt) ex-stockyard at Alang in the west.
$1= INR 75.40