The Indian scrap market exhibited thin trade again last week; however the transactions that were made came in at a higher level raising containerized shredded prices for Indian imports by $5 a ton.
According to The Steel Index, India containerized scrap import prices advanced by $5 a ton week-on-week to $329 a ton CFR Nharva Sheva port in the week ended January 09.
Despite the price rise this week it would seem hasty to suggest it represents an emerging trend, particularly while a number of market participants remain pessimistic for the current quarter.
With the Rupee continuing its weakness against the Dollar imports are expensive and banks have begun to tighten up lending to mills leading to a reduction in liquidity.
Views from March onwards however hold a little more promise with a number of participants predicting a rebound to coincide with the end of the fiscal year.
This however will depend heavily on the development of domestic steel demand which is currently shrouded in uncertainty.
Zhejiang Yaang Pipe Industry Co., Limited