Import scrap prices in India have showed signs of hardening over the past week, but buying has continued to remain stalled by local currency volatility and sufficient availability of local scrap, though a few deals have been reported for higher grades of import scrap, SteelOrbis learned from trade and industry circles on Wednesday, February 4.
The sources said that ex-UK/Europe containerized shredded scrap offers were pushed up by sellers to the range of $355-365/mt CFR Nhava Sheva port in the west, compared to $345-355/mt CFR a week ago. But no trades were confirmed during the past week.
However, two tonnages of 3,000 mt and 4,000 mt of ex-Australia PNS ferrous scrap were reported at average prices of $365-368/mt CFR Chennai port in the south.
Similarly, a southern India-based induction furnace operator reported a trade for 1,000 mt of ex-Malaysia busheling scrap at $360/mt CFR Chennai port, the sources said.
Ex-UK origin HMS I/II (80:20) offers were quoted at $340-345/mt CFR, about $5/mt higher than the previous week but no deals have been concluded, while ex-Australia HMS is near $330-335/mt CFR.
“Currency volatility continues to offer strong headwinds to imports. Sustained volatility makes it very difficult for an importer to estimate the final landed price of the material and related costs like currency hedging. At the same time, there is sufficient local availability of bulk scrap to meet demand,” a Mumbai-based ferrous and non-ferrous scrap dealer said.
“Of course, there is some demand for higher grade imported scrap line PNS and busheling scrap from induction furnaces seeking to produce steel suitable for high grade castings and specific machinery parts. This is what was reflected in a few trades for high grade scrap in recent weeks as these grades are in tight supply locally,” he added.
