Import scrap prices in India have remained range-bound over the past week and, though a few deals for ex-Europe material were concluded, the rise in the number of inquiries was not matched by a rise in trades as sellers were unwilling to give discounts to push volumes, indicating some tightening on the supply side, SteelOrbis learned from trade and industry circles on Wednesday, June 7.
The sources said that, even though the domestic scrap market was showing signs of increasing, induction furnace operators were not willing to accept current offers without discounts as the finished steel market led by long products has been languishing both in terms of stock movement and prices.
Ex-Europe containerized shredded scrap offers have ranged at $440-445/mt CFR, but the tradable level was at $435-439/mt CFR, almost stable from $435-440/mt CFR seen last week.
Around 2,000 mt of ex-Europe shredded scrap were booked at $439/mt CFR Nhava Sheva and another smaller deal was rumored at $435/mt CFR. In addition, 1,500 mt of ex-Europe HMS (80:20) scrap were traded at $428/mt CFR Kandla port in the west, relatively stable compared to the reference range for this grade at $420-430/mt CFR last week.
“It is too early to say if the global scrap trade is on an uptrend. But sellers are definitely attempting to push up prices. There is some revival of appetite among local secondary mills to restock imported raw materials, but higher prices are not being accepted,” a Mumbai-based ferrous and non-ferrous trader said.
“Weakness in the finished steel market across regions will ensure the raw material price increase will be slow. This is reflected in the local market where secondary mills are keen to buy, but are resisting higher prices,” he said.