Import scrap prices in India have dropped further over the past week amid falling demand and very small average deal sizes, with the domestic long products market continuing to show fundamental weakness, SteelOrbis learned from trade and industry circles on Wednesday, April 26.
Ex-Europe containerized shredded scrap prices were at $440/mt CFR Nhava Sheva port in the west, but actual deals have been reported at $438/mt CFR, with the average deal size not exceeding 1,000 mt. The current reference price at $438-440/mt CFR is $7-10/mt below the level seen a week ago. Other regional markets like Bangladesh and Pakistan are inactive, and sellers are not keen on aggressively converting offers to deals.
The sources said that a deal for 500 mt of ex-Europe containerized shredded scrap was reported at $438/mt CFR by a secondary mill, while a Mumbai-based trading firm concluded a trade for 300 mt at $439/mt CFR.
A Gujarat-based secondary mill operator cum ferrous metal trader has reported a trade for 500 mt ex-West Africa HMS (80:20) scrap at $428/mt CFR Kandla port, down $2/mt from a similar deal a week ago.
“There is not much interest from either buyers or sellers. Buyers are too nervous over the rapidly weakening prices of construction grade steel and do not have liquidity to restock imported raw material. Sellers are not interested in pushing such small-tonnage deals at low prices,” a Mumbai-based scrap dealer said.
“The market will remain moribund in the medium term and a recovery in trading is very unlikely. In the local market, everyone is looking at the price of $400/mt CFR. It is a distinct possibility too,” he said.