Indian imported scrap prices were triggering higher buying interest from local secondary mills, but actual deals were limited by sellers shifting focus of offers to neighbouring Pakistan, where price realizations were higher, SteelOrbis learned from trade and industry circles on Wednesday, November 17.
The containerized shredded scrap price was $550-555/mt CFR Nhava Sheva port in the west, slightly down by $2-3/mt from early November, triggering higher buying interest from secondary mills also supported by low raw material inventories post-festival holidays.
However, according to the sources, despite rise in buying interest from Indian secondary mills, sellers moved offers to Pakistan where prices were heard higher at around $560-564/mt CFR Port Qasim.
“Asian markets are showing divergent trends. Indian mills are keen to take advantage of dips in prices to conclude deals. But sellers are more keen on selling in Pakistan,” a Gujarat based scrap trading firm and mill operator said.
“Scrap offers at lower levels are unlikely to sustain as demand-supply balance is emerging in global markets. Hence local steel mills are keen to restock quickly at the lows,” he added.
At least two other market participants pointed out emerging trend of faster pace of rise in price of imported heavy melting scrap (HMS) I/II 80:20 compared to relative softening of imported shredded scrap and narrowing of price difference between the two.
They said that ex-UK HMS I/II price was up at $530-540/mt CFR, compared to deals concluded at $510-520/mt CFR a week ago.
Sources said that a Maharashtra based mill reported a trade for shredded scrap for February delivery at $550-553/mt CFR Nhava Sheva.
A Gujarat-based mill was heard to conclude a trade at price of $554/mt CFR Kandla port in the west.
An eastern India secondary mill reported a trade for 15,000 mt HMS I/II at price of $525-530/mt CFR Haldia port, the sources said.
Meanwhile in the local market, scrap prices maintained at recent peaks of INR 40,700-41,700/mt ($550-563/mt) ex-Mandi Govindgarh in the north.
$1= INR 74.40