Import scrap prices in India have declined amid subdued demand and as buyers have been submitting low bids, seeking to offset the impact of the sustained depreciation of the local currency, SteelOrbis learned from trade and industry circles on Wednesday, January 15.
Offers for ex-UK/Europe containerized shredded scrap have slipped to $375-380/mt CFR Nhava Sheva port in the west, compared to $385-388/mt CFR a week ago. But bids have been heard at the lower level of $370/mt CFR, versus sporadic deals at $380/mt CFR last week, as buyers have been seeking to offset the impact of higher landed prices after the Indian rupee touched yet another all-time low against the US dollar at INR 86.90, resulting in no deals being concluded for shredded.
The reference price for import shredded in containers in India has declined by $10/mt over the past week to $370-375/mt CFR.
Offers for HMS (80:20) of UK origin are at $355-360/mt CFR, down from $370-375/mt CFR a week ago, but buyers have been eyeing $350/mt CFR, which is $10/mt below the tradable level last week.
The sources said that sellers are unwilling to make additional accommodations and soften the impact of the plunging rupee on buyers after already submitting lower offers.
“With the rebar market declining, secondary mills are unwilling to restock raw materials. The rupee continuing to slide against the US dollar has further reduced the appetite for imported raw materials even more. The landed price together with currency hedging costs is too expensive,” a Mumbai-based ferrous and non-ferrous trader said.
“Local scrap prices are firming up, rising about INR 200/mt ($2/mt) ex-Mandi Govindgarh in the north. But secondary mills still prefer local sourcing as the rise is still moderate compared to imports, without the currency exchange risks,” he said.