India’s import scrap prices have held their ground amid inactive trade conditions with buyers uncertain over finished steel prices, submitting low bids unacceptable to most sellers, SteelOrbis learned from trade and industry circles on Wednesday, November 6.
Ex-UK/Europe containerized shredded scrap prices have been maintained at around $390/mt CFR Nhava Sheva port in the west, with buyers heard to have submitted bids at as low as $380/mt CFR, causing trade activity to almost come to a standstill.
According to the sources, ex-UK/ West Africa HMS (80:20) scrap prices have been reported in the range of $370-375/mt CFR, versus $370-380/mt CFR last week, but have evoked no buying interest.
The lack of buying interest has been attributed by market participants to the slow pace of resumption of business activity after the Diwali holiday and the softening of rebar prices, prompting a cautious approach by secondary mills in restocking raw materials.
“The scrap market is expected to remain range-bound for a few more days as another festival holiday is approaching later this week. Thereafter we may see some revival if large integrated mills go in for base steel price hikes, triggering a lifting of the overall market,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Globally prices are seeing a minor uptrend. There is limited supply overall and hence Indian buyers will need to reconcile to higher price levels in the coming days,” he said.