Import scrap prices in India have recorded gains during the past week, while only stray deals have been reported at the higher levels amid major cities across the country going into stricter lockdowns, SteelOrbis learned from trade and industry circles on Wednesday, May 5.
The sources said that stray deals from secondary mills have been reported, largely forced by fears of shortages of supplies from local stockyards, following reports of scrap generation at major yards like Alang in the west coming to a stop as all shipbreaking operations have come to a grinding halt in the absence of any oxygen supplies for cutting tools.
Sources said that ex-US containerized shredded scrap prices have increased to $470-480/mt CFR Nhava Sheva, compared to $450-470/mt CFR a week ago.
According to the sources, two deals were reported in the market for shredded scrap at $470-475/mt CFR and $475-480/mt CFR Nhava Sheva, respectively.
“All major cities like Mumbai, Delhi and Chennai are in lockdown. The Covid-19 situation in the country is out of control,” a Mumbai-based trader said.
“Total diversion of oxygen from steel mills to hospitals will lead to a fall in steel output. All buying activity has been put on the backburner. Only a few secondary mills are facing emergency raw material stocking as supplies from local stockyards have been stopped. But I am still not sure if deliveries of the tonnages booked will arrive in time overcoming logistic challenges at ports and truck transportation,” the trader added.
Market sources said that no price quotations were available from Alang, as shipbreaking yards have stopped operations and trader-aggregators of ferrous scrap from the region are unsure if they will be able to secure stocks and make commitments to buyers.