India’s import scrap prices have inched up on global cues but the sharp depreciation of the local currency against the dollar to an all-time low has created nervousness among buyers who are avoiding deals amid strong currency risks, SteelOrbis learned from trade and industry circles on Wednesday, September 29.
The sources said that, with the Indian rupee depreciating to a historical low of INR 81.60 to the dollar with a further fall expected from the large dollar outflow from the country, most buyers comprising small traders and secondary mills have refrained from committing deals as most did not have adequate hedging capacities in foreign currency trades.
The sources said that Europe origin containerized shredded scrap offer prices were reported at $450-460/mt CFR Nhava Sheva port compared to $445-455/mt CFR a week ago, while ex-Europe HMS 80:20 offer prices have edged up to $438-445/mt CFR compared to $430-435/mt CFR a week ago.
But the tradable level is still hardly above $450/mt CFR for containerized shredded scrap.
“There is no appetite for restocking at a time when prices are rising and the local currency is plunging. Most secondary mills are also adequately stocked up for the lean festival period that has started,” a Mumbai-based trader said.