Indian imported shredded scrap prices have recovered, marking significant gains over the past week, but buying remained muted with secondary mills lacking confidence in restocking raw materials and resisting price increases, SteelOrbis learned from trade and industry circles on Wednesday, February 23.
The containerized shredded scrap price has risen to $550/mt CFR and at least one offer at as high as $575/mt CFR was heard, but no deal has been heard in the market over the past week. This compares to the tradable levels at around $535/mt CFR a week ago.
The only trade reported was for 10,000 mt bulk HMS I/II (80:20) of Gulf origin at close to $500-510/mt CFR Mumbai port in the west, up from trades at $494-498/mt CFR eastern ports earlier.
“The imported scrap market is throwing up a lot of challenges for buyers. On the one hand, ex-US shredded scrap prices are forecast to continue to rise through March after the recent rebound. But even prospects of a continued price increase are not prompting any immediate restocking as secondary mills do not have confidence the rebar market will sustain the recent revival,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Dealers are also not looking to increase inventories of imports as we assess that secondary mills will increase domestic sourcing of sponge iron and continue to resist higher import prices of scrap. Mills can rework their raw material choice only if recent gains in the rebar market consolidate through March,” he said.
Meanwhile, in local market bulk scrap prices have also staged a rebound, gaining INR 400/mt($7/mt) to INR 40,400-40,600/mt ($539-542/mt) ex-Mandi Govindgarh in the north amid continuing tight supplies, sources said.
$1 =INR 74.90
