Import scrap prices in India have showed marginal gains as there have been few sellers active in the market, but no deals have been confirmed owing to low bids and buyers’ disinterest in imported raw materials amid weak demand and weak prices for finished steel, SteelOrbis learned from trade and industry circles on Wednesday, September 4.
Ex-UK/Europe containerised shredded scrap has been reported in the range of $385-390/mt CFR against $380-388/mt CFR a week ago, but with bids $10/mt lower and no deals concluded over the past week.
Ex-UK HMS (80:20) scrap prices have remained unchanged at $366-370/mt CFR Kandla port, but with bids $5/mt lower no deals have been confirmed in the market.
“The extremely bearish and silent market conditions are going on for weeks now. There is no buying activity as secondary mills are worried over the sustained fall in finished steel prices and have no appetite to go in for riskier imported raw material. Apart from the price of scrap, it is very difficult for any importer to pass on higher costs of freight and transportation as users will not be able to pass on the costs to end-users of steel,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“There is sufficient availability of local scrap and the alternative cheaper choice of sponge iron to meet the lower demand from secondary mills,” he said.