India’s import scrap market has seen increased buying activity as secondary steel mills increased restocking and, though prices posted an increase generally week on week, the gap between deals at higher and lower price levels has widened, SteelOrbis learned from trade and industry circles on Wednesday, June 16.
Shredded scrap prices moved up to a week’s high of $520-522/mt CFR Nhava Sheva port in the west, but fell back towards the close of the week, with deals concluded in the range of $516-518/mt CFR, which was still higher than the trades concluded at $507-510/mt CFR a week ago.
“On the demand side, optimism has improved among secondary steel mills with resumption of manufacturing activities in the west and north promoting higher levels of raw material restocking. Most of the secondary rebar producers are gradually increasing prices and the market’s ability to absorb higher prices is offering mills a higher cushion to absorb the rise in imported scrap,” a member of the Metal Recycling Association of India (MRAI) said.
“On the supply side, the imported scrap price is finding support from renewed buying activity in a key bellwether market like Turkey and rising demand in China. However, weak steel prices in some Asian markets like Vietnam are causing concern in the raw materials market, leading to the volatility seen during the past week,” he added.
A Gujarat-based secondary steel mill cum scrap trading firm reportedly concluded a trade for ex-US containerized shredded scrap at $520-522/mt CFR, market sources said.
In contrast, a secondary mill located in Raipur in central India concluded a trade at a lower price of around $516/mt CFR, the sources said.
A Maharashtra-based mill reported a trade at a price of around $520/mt CFR, but the tonnage could not be confirmed in the market.
With the easing of lockdown restrictions and more buyers returning to the northern India scrap market at Mandi Govindgarh, prices have gained INR 1,000/mt ($14/mt) to INR 39,000/mt ($532/mt), ex-stockyard, sources said.
$1 = INR 73.30