Import scrap prices in India have hardened over the past week on the back of the expected tightening of global supplies, but several buyer-seller negotiations are heard to have stalled over workable prices, while deals are expected to be finalized over next few weeks, SteelOrbis learned from trade and industry circles on Wednesday, January 7.
Offers for ex-UK/Europe containerized scrap prices at around $355/mt CFR Nhava Sheva port in the west, compared to $350-352/mt CFR a week ago.
Ex-UK HMS I/II (80:20) was quoted at $330-340/mt CFR, up from offers in the range of $325-330/mt CFR a week ago.
According to the sources, a number of secondary mills, emboldened by the recent upsurge in steel prices showed greater confidence in initiating negotiations on fresh bookings of imported scrap. However, deals have so far failed due to elusive workable prices, with sellers declining any adjustment of offers, citing tightening supplies, while buyers have been seeking slightly lower levels, factoring in the impact of the sliding of the local currency against the US dollar.
“The finished steel market is supportive of furnace operators to restock imported raw material. Talks are stuck on arriving at an acceptable price. We expect firm deals be clinched in the weeks ahead with both buyers and sellers arriving at a compromise price level,” a Mumbai-based distributor said.
“In our assessment, buyers are looking at around $2-4/mt adjustments to offers to offset the impact of the rapidly depreciating Indian rupee against the dollar,” he added.
