India’s imported scrap prices have continued to soften during the past week, amid reports of cancellations of orders coupled with negatives such as the sharp fall in the exchange rate of the local currency and excess supplies in domestic stockyards, SteelOrbis was informed on Wednesday, March 25.
According to the traders, at least two bookings have been cancelled by local secondary steel mills, following the difference arising between the booking price and the final invoice price. Even traders have been reluctant in accepting bookings, not being sure at what price volumes will ultimately change hands and suppliers are seeking suspension of trading in view of uncertain price movements.
Market sources said that import scrap prices are down by $9-10/mt this week in response to the sharp fall in prices in Turkey, which has been tracked and followed by most Indian secondary steel mills.
Sources said that only a small volume contract for ex-UAE shredded scrap was concluded by a western India-based electric arc furnace secondary steel mill at $270/mt CFR Nhava Seva port in the west, compared to a similar deal at $279/mt CFR in the previous week.
Due to the dislocation in the movement of tonnages across the EU and particularly in Germany, no firm offers have been available for ex-EU shredded scrap, the sources said. At the same time, the indicative level has declined by $10/mt from last week to $280/mt CFR India.
The sources said that the ex-US HMS I/II 80:20 scrap export price is down to $275-280/mt CFR Mumbai compared to $285-290/mt CFR in the previous week but, with the Indian rupee falling to an all-time low of INR 76.15 to the US dollar and uncertainties surrounding the arrival date of tonnages, local secondary mills have called off negotiations and no deals have been reported.
“There is no appetite for importing scrap by secondary steel makers. Supplying traders are submitting widely varying quotes and there are sharp variations in the short periods between booking and invoicing, and buyers are unwilling to take such risks. The weak Indian currency has also negated much of the fall in imported scrap prices and local secondary mills do not have any option to pass on higher input costs, with steadily falling rebar prices. Even small-volume requirements are being sourced locally, where prices have fallen for the second consecutive week,” a member of the Recycling Association of India (MRAI) said.
Sources said that scrap prices are down INR 300/mt ($4/mt) to INR 22,350/mt ($293/mt) ex-stockyard at Mandi Govndigarh in northern India. Prices have edged down INR 200/mt ($3/mt) to INR 21,400/mt ($281/mt) ex-stockyard at Alang in the west.
$1 = INR 76.15