Import scrap prices in India have increased with sellers submitting higher offers, but trade activity has become muted with the local currency depreciating to a 10-month low against the US dollar, coupled with buyers remaining uncertain over the sustainability of the uptrend, SteelOrbis learned from trade and industry circles on Wednesday, August 16.
The tradable level for ex-Europe/UK shredded scrap in containers has risen by $5-6/mt over the past week, settling at $425-426/mt CFR on August 16.
Among the limited deals for ex-UK and ex-Europe containerized shredded scrap at $425/mt CFR Nhava Sheva port in the west and $426/mt CFR Kandla port, sources said. Offers for similar origin materials have reached $430/mt CFR, though no deals at this price could be confirmed in the market.
Another trade was confirmed for ex-UK HMS scrap of 2,000 mt at $405/mt CFR Nhava Sheva, sources said, though many customers are still not ready to accept above $390-395/mt CFR for this grade.
“With the rebound in finished steel prices and with construction grade steel performing well, secondary mills are well-placed to continue restocking imported scrap. Trade circles are expecting September to be a strong month for the global scrap trade,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“But the Indian rupee weakening to a 10-month low against the US dollar and breaching the INR 83.00 to the dollar mark will temper import trade activity, particularly among small and medium induction furnace operators with limited currency hedging abilities. As emerging already, we are likely to see a widening of the bid-offer gap as sellers will continue to push up prices but buyers, despite requirements, are cautious in committing bookings,” he said.