Indian scrap prices kept moving down in early November. Weak finished steel demand continued to push raw material quotes down. However, some hopes for a rebound have risen in the market.
The import offer price range decreased by USD 70/t from mid-October to USD 1,300-1,350/t CFR on November 9. The low-end prices are still mainly attributed to the material from SE Asia. Last week, the most attractive offers were heard at USD 1,330/t CFR Mundra but dropped by another USD 30/t this week.
Foreign suppliers had to follow the downtrend in recent weeks. Although Indian bid prices were not attractive, it was still the leading destination for many of them in terms of volumes.
The latest import prices for 316 grade STS scrap were reported in the range of USD 2,550-2,600/t CFR, down USD 50-100/t over three weeks, SMR learned. However, buying activity was still sluggish in this segment, as Indian mills preferred to purchase small lots in the domestic market, just covering urgent needs and avoiding rising stocks.
The finished STS market of India was still struggling from cheap import inflow. Chinese 304 CR (2 mm) prices were heard at around USD 2,030/t FOB this week, at least USD 70/t lower than in late October – early November. “Some offers from Indonesia have been heard even at USD 2,100/t CFR. It is impossible to compete with such low prices” a representative of a famous Indian STS maker told SMR.
However, there are some suggestions that import scrap quotes may at least stabilize soon, as supply is getting tougher now. In particular, some Indonesian scrap exporters said they got letters from the government about upcoming measures to restrict raw materials export from the country (including scrap). Besides, “Getting export quota is much more difficult now. In 2017-2018 I easily could sell 2,500 t to abroad. Now, it is hard to get 500 t quota for STS scrap exports,” A Jakarta-based trader told SMR.
Post time: Nov-21-2023
