Import scrap prices in India have continued their downward movement due to the weak demand from secondary mills following sustained declines in finished steel prices, and some buyers expect a further weakening of the global scrap market and hence have preferred to wait and watch, SteelOrbis learned from trade and industry circles on Wednesday, August 21.
Offers for ex-UK/Europe containerised scrap prices are at $397-400/mt CFR Nhava Sheva port in the west, compared to $405-410/mt CFR a week ago, and stray bids reported in the market are still $5-10/mt lower, resulting in no confirmed trades.
The sources said that ex-UK HMS scrap has been quoted at $375-380/mt CFR, almost unchanged from the previous week, but it has still failed to attract any buyers, who are heard to be giving bids at least $10-15/mt lower.
“There is a combination of factors leading to a lack of interest in imports despite the price falls. Firstly, the market is returning to business after an extended weekend holiday and buyers are yet to become fully active. Secondly, secondary mills are lacking the appetite to restock material after sustained declines in rebar prices with no bottom in sight. Thirdly, there is sufficient affordable scrap available locally,” a Mumbai-based scrap trader said.
“Also, buyers are anticipating the global fall will gather momentum and hence there is no rush to enter the market with a commitment now,” he said.