A slight weakness has emerged in India’s import scrap market with buyers remaining quiet, with secondary mills deferring raw material restocking following the plunge in rebar prices, SteelOrbis has learned from trade and industry circles.
Containerized shredded scrap prices have declined to to $545-550/mt CFR Nhava Sheva, compared to $545-555/mt CFR last week, but buyers have been reluctant to accept prices above the $550/mt CFR mark amid falling rebar prices. Actual bids fell to $540/mt CFR and below.
“Globally, sentiments in the scrap market are changing rapidly in either direction. US sellers are willing to accept slightly lower prices to push deals. But buyers in India and Pakistan are generally deferring trades until local rebar prices find stability,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“There have also been few US sellers active in recent weeks owing to the Thanksgiving holidays, and year-end considerations also contributed to low trading activity in this region,” he said.
A section of the industry also pointed out that the low appetite for imported scrap could be attributed to sponge iron prices being down to a nine-month low of INR 26,800/mt ($357/mt) ex-works.
According to market sources, a Gujarat-based secondary mill operator cum scrap trader concluded a deal for February shipment at $550/mt CFR Kandla port in the west.
A central India-based furnace operator reported a trade at slightly below $550/mt CFR Nhava Sheva port in the west, the sources said.
Meanwhile, in the local market bulk scrap prices lost INR 500/mt ($7/mt) to INR 39,700-40,700/mt ($529-542/mt) ex-warehouse at Mandi Govindgarh in the north.
$1= INR 75.00