Import scrap prices in India have remained largely unchanged during the past week, but trade has been muted as buyers’ expectations of a sharp downward correction in the market have been belied, SteelOrbis learned on Wednesday, September 30.
Market sources said that ex-US containerized shredded scrap prices have remained at $310-315/mt CFR Nhava Sheva port in the west, while ex-UK shredded scrap offers have still been heard at around $322/mt CFR.
Traders and at least two secondary mills said that buying in benchmark markets like Turkey has resumed on a low note over the past week and, even though prices are on the lower side, the expected sharp downturn did not materialize, disappointing buyers among Indian secondary steel mills who preferred to further delay restocking until the market finds a new short-term direction.
With the price of shredded scrap not falling to more acceptable levels, a few secondary steel mills have opted for trades for comparatively lower-priced bulk HMS I/II scrap.
The sources said that only a single trade has been reported in the market for containerized shredded scrap by a western India-based secondary rebar producer at a price of around $310-315/mt CFR Nhava Sheva.
Another Gujarat-based secondary steel mill cum trading firm which usually trades in ex-US shredded scrap shifted to concluding an import contract for 25,000 mt of bulk ex-UK HMS I/II at around $290-295/mt CFR Kandla port in the west, the sources added.
In the local market, scrap prices have also remained stable, at around INR 25,300/mt ($343/mt) ex-stockyard at Mandi Govindgarh in the north and at INR 23,100/mt ($313/mt) ex-stockyard at Alang in the west.
$1 = INR 73.80