Import scrap offers in India have dipped as trade activity has remained silent amid a combination of steadily weakening finished steel prices and uncertainties over freight rates and cargo arrival schedules against the backdrop of the Iran-Israel conflict, SteelOrbis learned from trade and industry circles on Wednesday, June 25.
Sources said that ex-UK/Europe containerized shredded scrap offers have been reported at $360/mt CFR Nhava Sheva port in the west, compared to $360-362/mt CFR a week ago, but, with bids at a low of $350/mt CFR, no deals have been confirmed.
Similarly, offers for HMS I/II (80:20) of UK origin have been reported at $338-340/mt CFR, compared to $340-342/mt CFR a week ago and West African origin HMS scrap has been reported at $335/mt CFR Kandla port, but no trades have been reported during the past week.
The fall in scrap offer prices failed to attract any buying as its impact was offset by the Indian rupee touching another low of INR 86.00 against the US dollar. At the same time, the sharp slump in local bulk scrap prices was sufficiently more attractive to meet limited demand seen from domestic induction furnace operators.
Sources said that bulk scrap prices sank by INR 300/mt($3/mt) to INR 32,800/mt ($382/mt) ex-Mandi Govindgarh, with sellers continuing to offer an additional two to three percent discounts to check inventories.
“Low capacity utilization of induction furnaces, low raw material demand and the weak local currency are all major negatives to imports. Low finished steel margins do not make imported raw material viable. There are a lot of local volumes available to meet current demand levels,” a Mumbai-based trader said.
“The Iran-Israel conflict and freight rate uncertainties have added another negative dimension to any kind of trade activity,” he added.
$1 = INR 85.96