Scrap prices have continued to seek higher levels in India during the past week riding on rising import offers though trading activity both locally and for imports has lost momentum as domestic secondary steel producers have become cautious due to the higher prices, SteelOrbis has learned.
In response to signs of a recovery in steel prices across Europe and the US, ex-US imported shredded scrap offers have risen by $10/mt week on week to $265-268/mt CFR Nhava Seva port in western India. According to the sources, ex-UAE offers are also slightly higher in the range of $255-260/mt CFR Nhava Seva port, compared to the range of $250-255/mt CFR in the previous week. Two deals for ex-UAE cargoes for mid-November delivery have been booked by secondary steel producers during the past week at $252/mt CFR.
“The Indian secondary steel sector has slowed down fresh bookings having already restocked heavily early in the month at lower prices. Producers are turning cautious over increasing domestic and imported scrap prices, at a time when domestic finished product demand continues to be sluggish and amid limited options of passing on higher input costs in sales prices,” a member of the Metal Recycling Association of India (MRAI) said.
“There is a sentiment that finished steel prices across North America and Europe might have bottomed out and might get on to a recovery in the coming weeks, triggering a revival in scrap prices from recent lows. As for local secondary producers, any further increase in import offers will mark a shift towards domestic scrap as most stockyards in northern and western India have heavily stocked up,” he added.
Traders said that local scrap prices have moved up by INR 600/mt ($8/mt) during the past week to INR 22,800/mt ($322/mt) ex-stockyard at Mandi Govindgarh in northern India. Prices are up INR 500/mt ($7/mt) to INR 22,000/mt ($311/mt) ex-stockyard at Alang in western India.
$1 = INR 70.80