Import scrap prices in India have edged up on the back of global cues, but buyers have remained on the sidelines lacking confidence to conclude bookings against the backdrop of the sustained fall in finished steel prices and local currency depreciation, SteelOrbis learned from trade and industry circles on Wednesday, April 29.
Sources said that ex-UK/Europe containerized shredded scrap offer prices have hardened to as high as $420/mt CFR Nhava Sheva port in the west, up from $397-400/mt CFR a week ago, with sellers attributing the rise to higher freight charges and demand from other destinations.
Similarly, ex-Europe HMS I/II offers have increased to $390-400/mt CFR, against $375-380/mt CFR a week ago.
The sources said that, despite the steady tightening of supplies, particularly from major trading hubs like Mandi Govindgarh in the north, secondary mills have not been willing to accept the risks of higher prices coupled to delivery uncertainties in global trade at a time when finished steel prices have entered what has been seen as a prolonged downtrend.
Bids have been reported at $400/mt CFR for containerized shredded scrap and $375/mt CFR for HMS scrap, but these have been unworkable levels for sellers, the sources said.
The SteelOrbis reference price for shredded scrap in India has settled at $400-420/mt CFR, with the midpoint at $410/mt CFR, up by $15/mt on average over the past week.
The higher offers, coupled with the Indian rupee at another historical low weaker than INR 94 to the US dollar, have significantly increased the landed price of imports and will not be supported by current margins from finished steel prices, the sources added.
