Import scrap prices in India have continued to edge lower amid inactive market conditions and, despite the stray deals for bulk HMS scrap reported during the past week, a negative outlook persists with secondary mills not expected to resume bookings over the next few weeks, SteelOrbis has learned from trade and industry circles.
The containerized shredded scrap price was heard at $510-512/mt CFR Nhava Sheva port in the west compared to $515/mt CFR a week ago. Only one deal was rumoured at $510/mt CFR.
According to sources, even the limited number of secondary mills that were looking to restock raw materials have been shifting to bulk ferrous scrap or locally sourced sponge iron available at a lower price.
One offer for ex-US containerized shredded scrap was heard at around $500/mt CFR, but no confirmation was available of whether a deal was concluded, with at least two traders claiming the “offer to be too unrealistically low”.
The traders said that, without any sharp uptick in local rebar prices and an improvement in mills’ utilizations rates above the current 50-60 percent, import scrap bookings will remain negligible in the coming weeks.
Market sources said that a central India-based secondary mill has reported a trade for “good quality” HMS I/II (80:20) bulk scrap at $470-480 CFR. A Gujarat-based scrap trader cum secondary mill operator has reported a trade for similar bulk scrap at a price of around $490/mt CFR Kandla port. However, information regarding the origins of the tonnages was not readily available in the market.
“There is no appetite among secondary steel mills to restock imported raw materials at current prices and low mill utilization levels. Import prices have to fall further to induce any buying activity,” an official from eastern India’s largest secondary mill operator said.
The landed price of imported bulk ferrous scrap works out at INR 35,000-37,000/mt CFR. The domestic sponge iron price is around INR 29,500-30,000/mt. With no compulsion to increase mills’ outputs, operators are sourcing more local sponge iron to maintain operations,” he added.