India’s import scrap prices have entered a correction phase over the past week, but buyers have maintained a hold on new transactions, anticipating the correction will gain further momentum, SteelOrbis has learned from trade and industry circles on Wednesday, March 17.
The sources said secondary steel mills’ appetite for restocking imported raw material has diminished further and higher availability has put pressure on prices. However, a large number of market participants said that the market was reversing, but still has to hit a bottom in the current cycle.
Market sources said that most of the stray trades concluded over the past week have been in the range of $440-445/mt CFR Nhava Sheva port in the west for ex-US containerized shredded scrap, compared to deals at $455/mt CFR a week ago. At least two offers at slightly higher levels of $450/mt CFR were rejected by buyers, indicating price resistance emerging in the market.
Offers for ex-UK shredded scrap have been heard at unchanged levels of $470/mt CFR, but no deals have been reported over the past week, the sources said.
“The market is in stalemate conditions. The moment market has entered a correction phase, with buyers pressing the hold button and waiting for a new bottom to emerge, which currently seems still some distance away,” a member of the Metal Recycling Association of India (MRAI) said.
“In local market, steel demand is weakening from its post-lockdown peaks as indicated by integrated steel mills lowering finished steel base prices. The gain in rebar prices is running out of steam and secondary steel mills are in no hurry to restock particularly imported raw material,” he added.
Sources said that a Maharashtra-based secondary steel mill concluded a small-tonnage deal for containerized shredded scrap at a price of around $440/mt CFR Nhava Sheva.
The weakness in the local billet market has kept secondary steel mills away for local scrap sourcing, putting pressure on prices. Scrap prices are down INR 500/mt ($7/mt) to INR 39,000/mt ($537/mt) ex-stockyard at Mandi Govindgarh in the north and down INR 500/mt ($7/mt) to INR 32,750/mt ($451/mt) ex-stockyard at Alang in the west.
$1 = INR 72.60