Imported scrap offers into India have risen by $10-15/tonne in the past two weeks, marking a significant recovery after nearly two months of downturn, notes Kallanish.

EU-origin HMS scrap is priced at $380-385/t cfr India, with shredded scrap at $410-415/t. A few offers for shredded scrap are at $420-425/t cfr, while buyers’ acceptance is still being awaited.

This rise in imported offers is due to positive sentiment in the Indian steel circuit following the fiscal year ending in March.

Over the past two weeks, restocking activity for steel raw materials and finished products has increased in the Indian market. Domestic scrap and rebar prices have jumped by INR 2,500-3,000/t ($30-35) in a fortnight.

“Indian rebar producers have been making only need-based purchases since January-end. Now, all the stocks for rebar, scrap, and DRI have depleted to minimal levels, triggering the restocking demand,” observes a scrap trader based in Mumbai.

While the positive movement in domestic scrap demand and prices has also led to a rise in imported scrap offers, only a few deals for imported material are being concluded, inform market participants.

A Delhi-based trader quips: “The increase in domestic scrap and rebar prices is sentiment-driven and temporary, as there is no fundamental change in demand. Additionally, buyers prefer domestic material over imports."

This is mainly because of higher lead times in the case of imports and the weakening Indian rupee. The INR recently sunk to a record low against the dollar amid rising crude oil and gold prices, along with geopolitical tensions in the Middle East.

Amid the current market uncertainty, a northern India-based rebar producer advises caution. “Imports [of scrap] are becoming costlier, and we are unsure about end-user demand sustainability. It's wiser to wait and avoid bulk purchases, especially with imports.”