Import scrap offer prices in India have remained stable over the past week with the prolonged inactive market conditions broken by a few small-volume deals, but participants are continuing to maintain conflicting outlooks based on the negatives of weak finished steel prices and the depreciating local currency being major headwinds to any immediate revival, SteelOrbis learned from trade and industry circles on Wednesday, September 24.
Sources said that ex-UK/Europe containerized shredded scrap prices are quoted in the range of $360-365/mt CFR Nhava Sheva port in the west.
Ex-UK HMS I/II (80:20) scrap is also stable at $325-330/mt CFR, while some offers for ex-Malaysia busheling scrap have been reported in the range of $374-378/mt CFR Chennai port, but no deals could be confirmed in the market for this grade.
The sources said that a deal for 500 mt of ex-UK shredded scrap was confirmed by a Gujarat-based trading firm cum induction furnace operator at $358/mt CFR, while another trade for 1,000 mt of HMS scrap was reported at $320/mt CFR Kandla port, but the origin could not be confirmed.
As a result, the SteelOrbis reference price for imported shredded scrap in India has remained stable over the past week at $355-360/mt CFR.
However, despite the emergence of a few trades in the imported raw material market after several weeks, a section of market participants have ruled out any immediate revival in overall activity.
They pointed out that weak finished steel prices, particularly construction grade long products, the India rupee depreciating steadily and forecast to breach another all-time low of INR 89.00 to the US dollar in the short term, and the limited further downside for import offers will prove to be strong headwinds and buyers will remain cautious despite the few deals seen in the past week.