Imported scrap prices in India have indicated a reversal of the previous weak trend to record gains during the past week for both shredded scrap and HMS I/II amid moderate restocking by secondary steel mills anticipating a further increase in prices, SteelOrbis learned on Wednesday, October 21.
Higher trading activity in Turkey prompted US-based sellers to increase prices, but fresh trades by local Indian buyers have remained cautious in the wake of the persistent weakness in the rebar market.
However, even amid cautious sentiments among secondary steel mills and weak rebar prices, anticipations that imported scrap prices will consolidate on an uptrend in the medium term have triggered an increase in trades during the past week though for modest tonnages, traders said.
Ex-US containerized shredded scrap price was quoted in the range of $308-315/mt CFR Nhava Sheva port in the west compared to $305-310/mt CFR in earlier week. Gains in prices of HMS I/II were modest, rising by around $3/mt to $298-301/mt CFR, the sources said.
A Maharashtra-based secondary steel mill reported a trade of an estimated 15,000 mt of shredded containerized scrap at a price of around $308-310/mt CFR, sources added.
Another Gujarat-based steel mill concluded a trade of 20,000 mt of ex-US shredded scrap at the highest end of the range at $315/mt CFR Kandla port in the west.
An eastern India-based trader acting on behalf of two secondary steel mills reported a contract for 30,000 mt of HMS I/II bulk scrap at a price of around $298-300/mt CFR Haldia port in the east.
Reflecting the uptrend in imported prices, scrap prices in the local market also recorded modest gains during the past week on an improved number of trades. Sources said that prices edged up INR 200/mt ($3/mt) to INR 25,900/mt ($352/mt) ex-stockyard at Mandi Govindgarh in north. Prices also gained INR 200/mt ($3/mt) to INR 23,500/mt ($320/mt) ex-stockyard at Alang in the west.
$1 = INR 73.50