Import scrap prices in India have showed volatility over the past week, but finally settling down to trigger more active restocking by secondary mills at low levels supported by the softening of prices in neighbouring Pakistan, prompting sellers to reduce offers to the region, SteelOrbis has learned from trade and industry circles.
Early in the week, imported prices were heard at a high of $555-560/mt CFR Nhava Sheva port in the west of India. But prices trended down and deals were reported in the range of $548-550/mt CFR for containerized shredded scrap, down by $2-5/mt from last week’s tradable level.
According to sources, with imported prices softening in Pakistan from the previous week’s level of $560/mt CFR and above and buyers unwilling to accept such higher prices, more sellers have been looking at India to conclude deals at slightly lower levels.
“Overall raw material demand from secondary mills has remained unchanged, but more mills are inclined to commit to restocking deals in a falling scrap market,” a Gujarat-based ferrous and non-ferrous scrap trader said.
“Sellers are also more willing to revive trading activity reducing CFR prices, passing on the slight fall in freight rates as port congestions and container shortages are easing. We hear freight has dropped in the range of $5-8/mt on US-India voyages,” he added.
Market intermediaries reported a deal for ex-US shredded scrap by a western India-based secondary longs producing mill for end-of-January shipment at a price of around $550/mt CFR Nhava Sheva.
Another trade for the same origin was reported by a Gujarat-based mill at a price of around $548-550/mt CFR Kandla port in the west.
Meanwhile, in the local market, scrap prices have also trended lower, moving down by INR 500/mt ($7/mt) to INR 40,200-41,200/mt (540-554/mt) ex-stockyard at Mandi Govindgarh in the north.
$1 = INR 74.40