The uptrend in imported scrap prices in India has been reversed during the past week, with prices softening and buyers anticipating that the absence of benchmark-setting markets like Turkey will trigger a further price correction even as cash-strapped local secondary steel mills are cautious in entering the market now, SteelOrbis has learned on Wednesday, September 23.
According to market sources, ex-US shredded containerized scrap prices are down by $10-15/mt to around $310-315/mt CFR Nhava Sheva port in the west. One trade was even reported at slightly below the $310/mt CFR mark. Ex-UK shredded scrap has lost $10/mt with offers at $322/mt CFR, but buyers have not responded, the sources added.
A Maharashtra-based secondary steel mill has concluded a trade for an estimated tonnage of 15,000 mt of containerized shredded scrap at the price of $308-310/mt CFR Nhava Sheva for November delivery. A secondary mill at Raipur in central India concluded a contract for ex-US shredded scrap totaling around 8,000 mt at around $312-315/mt CFR, the sources added.
“The market is critically poised and can move in either direction now as a benchmark buying market like Turkey is absent from any significant buying activity. There is a further downside correction potential of $5-10/mt if buyers in Turkey continue to stay away,” a member of the Metal Recycling Association of India (MRAI) said.
“Indian secondary steel mills do not have sufficient cash flows to commit large import transactions in view of the steady weakening of rebar demand. The softening of import scrap prices is not enough to trigger any fresh bookings. Buyers here are awaiting a further price correction to restart even small-volume import bookings,” he added.
However, secondary steel mills, particularly small and medium sized rebar producers, have been relying on sourcing their small volumes of scrap from the local market, enabling prices to remain stable during the past week. Scrap prices have remained stable at INR 25,300/mt ($344/mt) ex-stockyard at Mandi Govindgarh in the north. Prices have remained unchanged at INR 23,100/mt ($314/mt) ex-stockyard at Alang in the west, market sources said.
$1 = INR 73.50