Import scrap prices in India have softened, but still no deals have been reported over the past week amid a combination of holidays, the uncertain price trend in construction grade steel, and the rapidly depreciating local currency, SteelOrbis learned from trade and industry circles on Wednesday, October 4.
Ex-Europe containerized shredded scrap offers have been reported at $415-420/mt CFR Nhava Sheva port in the west, compared to $423-425/mt CFR a week ago, and ex-UK offers for HMS (80:20) have been heard at $410-415/mt CFR, against $412-415/mt CFR a week ago. However, due to negative sentiments, buyers’ price ideas for shredded scrap are not above $410-415/mt CFR and for HMS are at $395-405/mt CFR at the highest.
“The market is down. Buyers are on wait and watch, waiting for prices to find a bottom. There is a lot of caution with the Indian rupee at a historical low against the US dollar and forecast to depreciate further and thereby increasing import risks,” a Mumbai-based ferrous and non-ferrous trader said.
“On the finished steel front, though demand remains strong, supply-side pressures are increasing and hence secondary mills are hesitating to restock raw materials. There is overall weakness in the Asian scrap market and local buyers are expecting the downtrend to gain momentum. It is therefore prudent to hold back import deals,” he said.