India’s import scrap trading activity has quietened down over the past week as low-priced bulk offers have been fewer with most sellers attempting to seek higher realizations, SteelOrbis has learned from trade and industry circles.
After bulk deals for ex-UK and ex-US mixed scrap cargoes were traded at $405-409/mt CFR to India last week and one more deal was rumored at $400/mt CFR, such low prices have disappeared this week. Sellers were withdrawing discounted bulk offers, anticipating prices may have bottomed out in the current cycle and seeing the rebounding trend in Turkey.
Trade circles said that a central India-based secondary mill reported a trade for ex-UK bulk scrap for 10,000 mt at $420-430/mt CFR Chennai port, which, however, could not be confirmed by the time of publication.
Containerized shredded scrap prices from Europe and the UK have increased to $485-490/mt CFR, versus mainly $460/mt CFR in the middle of last week. One trade has been rumored at the lower end of the range, though overall demand has been slack as the uptrend has been rapid and customers have already purchased good volumes of imported scrap.
“Active trades at discounts deflated over the past week largely due to differing outlooks of sellers and buyers. The US and UK sellers are still active in the sub-continent, but are more optimistic over realizing higher prices. Hence, both buyers and sellers are holding back deals to assess the forthcoming price trend,” a Mumbai-based trader said.
“As far as the local market in India is concerned, we assess that restocking has been completed by secondary mills for the immediate term and stocks have piled up. Finished steel prices are stabilizing at lower levels. Hence, indicative higher prices will lead to a further depression in market activity,” he said.