Indian scrap import prices have remained stable during the past week, taking a pause from the recent uptrend, but deals have been limited by uncertainties over the short-term trend that might emerge following the interrupted price rally.
Market sources said that, while containerized shredded scrap prices have remained stable, secondary steel mills with limited liquidity are hoping that the break in the uptrend will trigger a downward correction in prices, but a section of local traders believe that prices will continue to consolidate at higher levels in September.
Sources said that ex-US containerized shredded scrap prices are quoted at the same levels as in the previous week at $309-315/mt CFR Nhava Seva port in the west, although one stray deal for ex-UK shredded scrap was reported at a slightly higher level.
According to the sources, a Gujarat-based secondary steel mill cum trading firm confirmed a deal for an estimated tonnage of 20,000 mt of ex-US containerized shredded scrap at a price of around $309/mt CFR for October delivery.
A Maharashtra-based electric arc furnace-based secondary mill concluded a deal for another ex-US shredded scrap containerized tonnage of about 15,000 mt at around $309-312/mt CFR Nhava Seva, the sources said.
A trade for estimated tonnage of around 12,000 mt was reported in the market by a local trader for ex-UK shredded scrap at the slightly higher price range of $315-317/mt CFR Nhava for October delivery, the sources added.
“The local market is jittery over the emerging short-term trend and hence importers are generally staying away from concluding deals even though prices have remained stable during the past week. There is no consensus in the market. Secondary steel mills are expecting that the current halt in the price uptrend is a precursor to a price correction setting in, but traders are taking a contrarian stand,” a member of the Metal Recycling Association of India (MRAI) said.
However, in the local market scrap prices continued to increase in anticipation of higher local buying. Prices edged up INR 500/mt ($7/mt) to INR 24,100/mt ($324/mt) ex-stockyard at Mandi Govindgarh in north. Prices gained INR 500/mt ($7/mt) at INR 22,500/mt ($302/mt) ex-stockyard at Alang in the west.
$1 = INR 74.30