Import scrap prices in India have increased in reaction to the rise in the number of inquiries and improved buying interest, following the robust rebound in the local long products market, but actual deals are being deferred until after the festival holidays which start later this week, SteelOrbis learned from trade and industry circles on Wednesday, October 2.
Ex-UK/Europe containerised shredded scrap is quoted at $395-400/mt CFR Nhava Sheva port in the west, compared to $385-390/mt CFR a week ago. Ex-UK HMS (80:20) scrap is being offered in the range of $370-385/mt CFR, against $360-370/mt CFR a week ago.
According to the sources, there has been a strong underlying buying interest and more inquiries have been placed by secondary mills, which have greater confidence in restocking imported raw materials. But mills have been deferring actual trades, unwilling to lock up funds during the extended holidays starting later this week.
“Globally, there is all-round optimism in the scrap market, following higher prices of iron ore and semis, particularly in China. Imported scrap prices are showing upside potential moving forward. Indian secondary mills are also much better placed to look at imported raw material as local prices for rebar are much better, enabling mills to absorb higher raw material prices,” a Mumbai-based distributor said.
“However, the intervening holidays are keeping mills on the sidelines. We expect actual trade activity to become more active in another 15-20 days,” he said.