Imported scrap prices have continued to rise in India during the past week, but the pace of the uptrend has eased slightly. Trading activity was subdued due to divergent sentiments in the market, sources told SteelOrbis on Wednesday, September 16.
One section of buyers believe that the rapid spread of the pandemic across the country, particularly in the rural and semi-urban hinterland, will impact the operations of secondary steel mills, resulting in further dips in fresh bookings. At least two other traders said that imported scrap prices are poised for a correction in view of the pause in buying in key benchmark-setting markets like Turkey.
However, a contrarian view expressed by another section of the market is that prices are remaining strong in originating markets like the US and the UK and demand is still strong in other Asian markets, which would support scrap prices for some time.
Market sources said that containerized shredded scrap prices have gained by $6/mt to around $320-330/mt CFR Nhava Sheva Port in the west.
A Maharashtra-based secondary steel mill has concluded a deal for a relatively modest tonnage of 8,000 mt of ex-US shredded scrap at a price reported in the market at around $320-325/mt CFR Nhava Sheva.
A Gujarat-based secondary steel mill cum scrap trading firm has reported a trade for 12,000 mt of ex-US containerized shredded scrap at a price of around $324-328/mt CFR Kandla port, the sources said.
An electric arc furnace-based secondary steel mill at Raipur in central India has concluded a trade for ex-UK shredded scrap totaling 8,000 mt at a price of around $330/mt CFR.
“There is uncertainty on both fronts. International prices are currently so poised that they can move in either direction. At the same time, the rise in the spread of the pandemic is making the operations of steel mills uncertain. Both are holding back buyers,” an official at the Metal Recycling Association of India (MRAI) said.
With a larger number of medium-sized secondary steel mills preferring to source their small volumes of raw material locally, scrap prices in the local markets have continued to gain ground over the past week. Prices are up INR 200/mt ($3/mt) to INR 25,300/mt ($343/mt) ex-stockyard at Mandi Govindgarh in the north. Prices are up INR 100/mt ($1.30/mt) to INR 23,100/mt ($313/mt) ex-stockyard at Alang in the west.