INDIA STEEL SCRAP: Upward price trend continues on tight supply

The price of shredded steel scrap imported into India moved up on Friday October 30 as a result of tight material supply, sources have told Fastmarkets.

Fastmarkets calculated the steel scrap, shredded, index, import, cfr Nhava Sheva, India, at $321.21 per tonne on Friday, up from $316.16 per tonne one week earlier.

Deal prices heard during the week were in the range of $322-324 per tonne, up from $315-316 per tonne last week.

Offers were heard as high as $325 per tonne, up from a high of $320 per tonne last week.

“The market is good, there is a continuous upping of the rates, and suppliers are more optimistic, but deals have not been done [at prices] as high as was hoped,” a buyer said. “I don’t think prices will stabilize because material availability and collection at yards has been affected [by the Covid-19 pandemic], and the winter adds to this.”

Higher local scrap prices were also keeping the market firm, sources said.

“Prices in India are not changing. There is no sense in increasing prices further when mills can’t sell finished products,” a seller said.

Fastmarkets’ weekly price assessment for steel scrap, HMS 1&2 (80:20 mix), import, cfr Nhava Sheva, India, was $280-295 per tonne on Friday, up from $275-290 per tonne one week before.

Offers of UK-origin material moved up to $280 per tonne, while a limited amount of material from the United Arab Emirates was said to be offered at $295 per tonne this week.

More deals were heard on the Pakistan market, with participants expressing a preference for dealing with that country rather than the Indian market.

A UK deal for 2,000 tonnes of shredded was heard at $322 per tonne cfr Port Qasim, while other transactions were heard ranging from $319 per tonne to $325 per tonne.

This was up from last week’s deal level of $315-322 per tonne cfr Port Qasim.

“The two markets are so similar,” a buyer said. “[There is] hardly $1-2 [per tonne] difference in freight [costs].”

Sign up here for Fastmarkets’ free webinar on November 4, 2020, beginning at 9am GMT: European flat steel market – on the mend after the Covid-19 fallout?
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– Suppliers’ response to the drop in demand
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