Posted on 28 Mar 2025
Indian demand for imported scrap, which saw a revival last week, has slowed again as the fiscal year draws to a close on 31 March.
Despite the dip in demand, imported scrap offers to India remain firm. UK/European shredded scrap is currently quoted at $380-385/tonne cfr Nhava Sheva, HMS (80:20) at $355-365/t cfr, and busheling scrap at $400-405/t cfr. However, bids are trailing by $5-7/t, Kallanish notes.
Meanwhile, domestic scrap prices in Europe have risen by $15/t since early March, with shortages of sought-after grades limiting price reductions for Indian buyers.
In case of finished steel, Indian rebar prices have also remained elevated, but trading activity has eased compared to last week due to the fiscal year-end, market participants report.
Over the past ten days, rebar prices have increased by INR 1,500-2,000/t ($17-23), while domestic metallics like scrap and DRI have not risen at the same pace. This disparity is attributed to ample availability of raw materials, whereas rebar prices have been supported by supply constraints.
A Punjab-based scrap trader observes: “Finished steel and domestic scrap prices have not moved in tandem. The maximum increase in domestic scrap over the past ten days has been INR 1,200/t. While primary producers have curtailed rebar production in recent months, domestic scrap generation and DRI production continued as usual. As a result, when rebar demand rebounded unexpectedly, scrap and DRI remained readily available.”
He further notes that domestic scrap generation has been higher this year than last. Consequently, interest in imported scrap has been subdued. Also, although the Indian rupee has strengthened against the US dollar in recent days, imported scrap remains costlier than domestic alternatives.
Looking ahead, rebar demand is expected to remain robust in April, and imported scrap demand is likely to improve as buyers typically restock before the monsoon season begins in June.
Source:Kallanish
