Import scrap prices in India have remained range-bound, with limited deals reported amid the local currency touching yet another historical low against the US dollar, increasing the currency risks of import contracts, and demand from secondary mills has been muted as plant outputs are reported to be adjusted in line with the slight demand slowdown for construction grade steel, SteelOrbis learned from trade and industry circles on Wednesday, October 11.
Ex-Europe containerized shredded scrap offers have been reported in the range of $418-420/mt CFR Nhava Sheva port in the west, compared to $415-420/mt CFR a week ago, but bids have been heard at $405-410/mt CFR at the highest, down by $5/mt over the past week, as buyers have expected declines to gather momentum and offset the impact of the local currency touching a historical low of INR 83.30 to the US dollar.
Ex-UK HMS (80:20) scrap offers have been reported at $410-415/mt CFR, but bids were submitted at $398-400/mt CFR, resulting in no deals going through.
“It is assessed that the imported scrap market will continue to show volatility. Coupled with the depreciation of the local currency, import costs and currency hedging costs have increased. Buyers are naturally cautious. There is also no urgency to restock raw materials of secondary mills, as there is sufficient inventory to meet the slowing demand for long products,” a Mumbai-based distributor said.
“There is no consensus among market participants. Sellers are unwilling to adjust offers because of tight supplies. Buyers are unwilling to conclude deals amid weak finished steel demand and the higher landed cost of imports. These elements will keep the market subdued in the short term,” he said.