Import scrap prices in India have continued to decline amid a combination of festival holidays, a lack of confidence among secondary mills given the slide in the rebar market and weak global cues, SteelOrbis learned from trade and industry circles on Wednesday, October 25.
Ex-Europe containerized offer shredded scrap prices have fallen to $395/mt CFR Nhava Sheva port in the west, down from $405-410/mt CFR a week ago, but buyers are heard to have put in bids in the range of $385-390/mt CFR, leading to muted trading conditions.
Sources said that ex-UK HMS (80:20) scrap was quoted at around $375/mt CFR Nhava Sheva, but bids were around $360/mt CFR resulting in no trade being concluded.
The only significant trade concluded was an ex-UK 2,000 mt tonnage of containerized shredded scrap at $395/mt CFR, the sources said.
“There are a lot of uncertainties among both buyers and sellers. Buyers are expecting that the market has yet to find a new bottom, while sellers are expecting some improvement in trade conditions once business resumes after the current festival holidays,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“But we are expecting a lack of interest in imported raw material to be prolonged. The local currency remains at a historical low, making imports very high-cost. At the same time, sponge iron prices have fallen by an estimated INR 500/mt ($6/mt) over the past week. Secondary mills lack confidence in restocking raw materials aggressively as rebar prices are suffering setbacks for the past several consecutive weeks and demand growth is below expectation,” he said.