After a brief pause, imported scrap prices in India have resumed their uptrend reacting to the resumption of bookings in Turkey, but trades in the local market have remained limited by negatives in rebar demand and prices.
Market sources said that the ex-US containerized shredded scrap price has risen to $310-318/mt CFR Nhava Seva port in the west, compared to deals concluded in the range of $309-315/mt CFR in the previous week.
Ex-UK shredded scrap offers received have also been at the higher prices of $320-325/mt CFR, but there have been no reports of any acceptance by either secondary steel mills or traders, the sources said.
Most of the limited deals concluded during the past week were for bulk HMS I/II, originating from the Middle East, with sources attributing this to lower prices below $300/mt CFR, and greater affordability for cash-strapped secondary steel mills compared to the higher-priced containerized ex-US shredded scrap.
At least two traders have confirmed that imported scrap offers have started to increase again amid the resumption of bookings in Turkey, with the latter’s return to the market improving sentiments.
However, local buyers among secondary steel mills in India have been facing a liquidity crisis from a combination of negative sentiments. The outlook and demand in the local rebar market and depressed prices in local sales have hamstrung arc furnace route producers from accepting higher raw material prices.
Market sources said that a Maharashtra-based electric arc-based producer has concluded a booking for an estimated tonnage of 15,000 mt of containerized ex-US shredded scrap at a price in the range of $310-315/mt CFR Nhava Seva.
Another secondary steel mill based in Raipur in central India has concluded a November delivery for bulk ex-UAE HMS I/II scrap at a price reported in a range around $300/mt CFR, the sources said.
An eastern India-based secondary steel mill has concluded a trade for ex-UAE bulk HMS I/II of an estimated tonnage of 12,000 mt for November delivery at a price of around $298/mt CFR Haldia port, market sources said.
The uptrend in imported scrap prices has been reflected in the local scrap market too, with prices edging up as secondary mills with low-volume requirements shifted to local sourcing. Prices gained INR 500/mt ($7/mt) to INR 24,600/mt ($333/mt) ex-stockyard at Mandi Govindgarh in the north. Prices were up INR 200/mt ($3/mt) at INR 22,700/mt ($308/mt) ex-stockyard at Alang in the west.
$1 = INR 73.80