Import scrap prices in India have indicated further slight increases amid limited availability and with just a few sellers in the market. There has been moderate trade activity as buyers are cautious due to the weak local currency, but strong construction grade steel prices have bolstered the outlook for raw material restocking in the coming weeks.
The SteelOrbis reference price for imported shredded scrap in India has increased by $5/mt over the past week to $440/mt CFR Nhava Sheva. Sources said that 1,000 mt of ex-Europe containerized shredded scrap trade was transacted at $440/mt CFR Nhava Sheva, and an ex-Europe HMS (80:20) deal was done at around $420/mt CFR Nhava Sheva.
A deal for West African origin HMS was reported at $414-418/mt CFR Chennai, compared to $410-412/mt CFR a week ago. Another trade for 1,000 mt of ex-Germany busheling scrap was confirmed at $463/mt CFR Mundra port in the west.
“Though the finished steel market continues to gain strength, there is some caution among secondary mills in going aggressive in restocking since the local currency is once again weakening, touching INR 83.00 to the US dollar. Also, there are fewer sellers active in the subcontinent, leading to a slight upward bias in prices,” a Mumbai-based trader said.
“But going forward, we expect buying activity to gain momentum as mills are increasing long product output and raw material restocking will become an imperative. Healthy and improving sales margins from long products will enable the mills to absorb higher import costs,” he said.