Imported scrap offers for Indian have declined during the past week but Indian importers have concluded limited trades and most have been avoiding offers above $300/mt CFR for ex-US scrap, anticipating that the downtrend will gather momentum and match the softening of prices in the local scrap market, SteelOrbis learned.
One Gujarat-based private steel mill and scrap trader has concluded a transaction for 30,000 mt of ex-US HMS I/II 80:20 at $315/mt CFR Nhava Seva in western India, compared to deals at around $325/mt CFR reported in the market in the previous week.
However, the sources said that importing traders are not willing to conclude transactions above the $300/mt CFR levels as most market participants expect ex-US offers to soften to $290-295/mt CFR over the coming weeks amid reports of a decline seen in Turkey and the weakening of scrap prices in the US.
The sources said that a deal for ex-UAE shredded scrap was concluded at $300/mt CFR Nhava Seva and, though the volume was not confirmed, the sources added that it was a low-volume transaction by a Mumbai-based trader, while most importing traders were waiting for offers to fall below $300/mt CFR before concluding large contracts. Estimates of ex-US shredded scrap prices are at $305-310/mt CFR at the moment.
The sources said that scrap prices in the local market are down INR 400/mt ($6/mt) week on week to INR 24,600/mt ($346/mt) ex-stockyard at Mandi Govindgarh in northern India. Scrap prices are down INR 300/mt ($4/mt) to INR 23,400/mt ($327/mt) ex-stockyard at Alang in western India.
“The recent scrap price uptrend is being reversed. Secondary steel mills are facing pressures on rebar prices and hence are cautious about committing import scrap sourcing and are waiting for offers to bottom out. Local scrap prices are softening at the same time, lowering import compulsions,” a member of the Metal Recycling Association of India (MRAI) said.