Import scrap prices in India have showed only small signs of weakness but, with bids lower and better local supplies at more competitive prices, the import market is lapsing into silence, SteelOrbis learned from trade and industry circles on Wednesday, September 25.
Ex-UK/Europe containerised shredded scrap has been quoted in the range of $385-390/mt CFR Nhava Sheva port in the west compared to $390/mt CFR a week ago. One deal was heard at $390/mt CFR late last week and in another port in east India, but at the moment bids are averaging not higher than $380/mt CFR and no new deals have been reported.
Ex-UK HMS (80:20) scrap has also weakened slightly to $360-370/mt CFR, against $365-370/mt CFR a week ago, but buyers still prefer local material.
According to at least two scrap dealers, supplies of scrap from the northern trading hub of Mandi Govindgarh have improved over the past week and secondary mills are seen to be actively restocking as prices have not only been more competitive vis-à-vis imports but are also without risks of currency volatility.
“Interest in imports is minimal. Globally, we expect prices to stabilise. Indian buyers can be expected to return to import trades in view of the revival in rebar demand and prices. Secondary mills are just waiting for the uptrend to consolidate before moving into committing import scrap trades,” a Mumbai-based dealer said.
“Once local long product prices stabilise at higher levels, it will give more confidence to secondary mills to look at imports with the option of passing on the higher cost of raw materials to their finished steel consumers,” he added.