India’s import scrap prices have softened and, despite the lower offers submitted over the past week, buyers have preferred to defer trades anticipating the downturn will gather momentum, also because of year-end consideration and pressure to conserve liquidity on books, SteelOrbis has learned from trade and industry circles.
The ex-Europe containerized shredded scrap price is reported at $460/mt CFR Nhava Sheva, down from the tradable level of $465-470/mt CFR a week ago. Though not confirmed, at least two traders said that they heard of ex-US containerized shredded scrap offers at $450/mt CFR but no reports of any deals were heard in trade circles. So, over the past week, the reference price for import shredded scrap in India has lost $10-15/mt coming to $450-460/mt CFR. Ex-UK origin shredded scrap offers have been at $470-472/mt CFR, but not workable in the current market conditions.
According to the sources, the ex-Europe HMS (80:20) scrap price has been reported at $435/mt CFR, down from $455/mt CFR two weeks ago.
“Buyers are unwilling to commit trade, anticipating that the recent upturn has run its course and prices would seek lower levels or move sideways prompted by the weakness in originating markets like the US,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Domestic scrap prices are down also and, if secondary mills want, they would prefer local sourcing. But most mills are not restocking in view of the weak rebar market and are cautious in building raw material inventories at the fiscal year-end,” he said.