Import scrap prices in India have showed a mixed trend over the past week amid inactive market conditions with buyers not willing to conclude deals due to a combination of fiscal year-end considerations, fuel supply disruptions faced by local induction furnace (IF) operators and delivery risks caused by the war in the Middle East, SteelOrbis learned from trade and industry circles on Wednesday, March 18.
Sources said that ex-UK/Europe containerized shredded scrap offer prices are marginally down by $5/mt to the range of $380-385/mt CFR Nhava Sheva port in the west, but no deals have been reported as neither buyer nor seller were able to confirm delivery timelines owing to uncertainties in shipping corridors.
Some shredded scrap offers for Australian origin were reported at $375-380/mt CFR, against $375-378/mt CFR offers received earlier this month. As a result, the SteelOrbis reference price has settled at $375-385/mt CFR this week, against $385/mt CFR last week. But most market sources agree that this is rather a correction due to the silent trade conditions, but in the near future the price may rise, especially seen the acceptance of higher levels in other South Asian countries.
In addition, ex-UK HMS 1 offers have been heard at $365-370/mt CFR Nhava Sheva port, down from levels of $370-372/mt CFR a week ago, the sources said.
It was pointed out that IF operators have lacked the confidence to book imports against several uncertainties in the market. For one, several secondary mills have been facing industrial gas supply disruptions and facing forced output cuts, and hence restocking raw materials is not a priority. At the same time, sellers have been unable to offer any delivery schedules amid a shortage of vessels accepting bookings along the usual trade corridors.
“Domestic scrap availability is also tightening as the absence of industrial gas supplies is limiting cutting operations at scrap yards. Shipbreaking operations have also been halted because of the lack of gas supplies. But still imports are not an option for secondary mills as their own output levels are uncertain and they are unwilling to accept the financial risks of the import trade,” a Mumbai-based ferrous and non-ferrous scrap trader said.