Import scrap prices in India have continued to inch lower, but buying has been limited by falling prices of sponge iron and ferrous scrap in the local market amid uncertain improvements for semis and long products, SteelOrbis has learned from trade and industry circles on Wednesday, December 22.
The containerized shredded scrap price is reported in the range of $530-540/mt CFR Nhava Sheva port in the west compared to $540/mt CFR a week ago.
“On the supply side, supplies of ex-US ferrous scrap are expected to rise from January, prompting sellers to lower offers. This is despite ex-UK offers becoming scarce as businesses close down for the holidays,” a Mumbai-based ferrous, non-ferrous scrap trader said.
“On the demand side, soft import prices are failing to trigger buying activity in view of the matching fall in prices of scrap in the local market. Also, the Indian rupee hovering close to an 18-month low against the US dollar and being the worst performing currency in Asia is prompting importers to avoid currency risks,” he added.
Sources said that sponge iron prices are down by about INR 700/mt ($9/mt) week on week, further lowering the incentive for induction furnace operators to import scrap.
The sources said that a Raipur-based secondary mill in central India has reported the only trade of the week, for 15,000 mt of shredded scrap for end of February delivery at around $540-543/mt CFR Kandla port in the west.
Meanwhile, in the local market prices have continued on their downtrend, with prices losing INR 500/mt ($7/mt) to INR 38,200-38,500/mt ($505-509/mt) ex-warehouse at Mandi Govindgarh in the north.
$1 = INR75.60
