Import scrap prices in India have remained stable over the past week amid almost silent trading activity with buyers lacking confidence to conclude import deals, given the ongoing weakness of finished steel prices and induction furnace operators preferring local sourcing to meet their limited raw material requirements, SteelOrbis learned from trade and industry circles on Wednesday, October 8.
Ex-UK/Europe containerized shredded scrap offers are unchanged in the range of $360-365/mt CFR Nhava Sheva port in the west. Some ex-Australia offers for shredded scrap have been reported at $350-355/mt CFR Chennai port, but no deals were confirmed in the market against these offers.
Offers for HMS I/II (80:20) scrap of UK origin were also stable at $325-330/mt CFR, but secondary mills restricted their purchases to cheaper local scrap and sponge iron alternatives.
In the local market, bulk scrap prices have continued to seek lower levels, moving down by INR 600/mt ($7/mt) to INR 31,100/mt ($350/mt) ex-Mandi Govindgarh in the north, while sponge iron prices have declined by INR 850/mt ($10/mt) to INR 27,150/mt ($306/mt) ex-Raipur in the central region.
“With secondary mills forced to push sales of finished steel at discounts amid steadily falling demand and prices, they have no confidence in restocking raw material, particularly imports carrying currency risks. Softer prices of local scrap and sponge iron are better alternatives under current conditions,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Scrap sellers too are unwilling to adjust prices and push sales in the subcontinent because other markets are showing signs of offering a better price. So, fewer sellers are active in this region,” he added.