Import scrap prices in India have edged up slightly over the past week amid global cues, but trade activity has been muted by sufficient local supplies, the weak currency exchange rate, and induction furnace operators deferring purchases with the finished steel market entering a correction phase, SteelOrbis learned from trade and industry circles on Wednesday, January 14.
Sources said that ex-UK/Europe containerized shredded scrap offers are in the range of $355-358/mt CFR Nhava Sheva port in the west, slightly higher than $355/mt CFR a week ago.
Ex-UK HMS I/II (80:20) offers have been quoted at 330-342/mt CFR, compared to $330-340/mt CFR a week ago.
According to the sources, the local currency continuing to weaken against the US dollar in a fresh round of depreciation and sufficient availability of local bulk scrap have prompted buyers to move to the sidelines.
At the same time, with finished steel prices facing resistance from buyers and a correction, raw material buyers have been deferring new deals, preferring to wait for some market stability, the sources added.
“Sellers are unwilling to adjust offers to push sales in the sub-continent at a time when prices are hardening in key markets overseas. Buyers are lacking in confidence in committing to new deals as the recent finished steel price rally has been checked. The weakening Indian rupee is another strong headwind to imports,” a Mumbai-based distributor said.