Import scrap prices in India have continued to harden over the past week. However, despite tighter local supplies, the further depreciation of the local currency, logistical risks in the global market and the impact of energy shortages on secondary mills have stalled any trading activity, SteelOrbis has learned from trade and industry circles.
Sources said that ex-UK/Europe containerized shredded scrap prices are quoted in the range of $390-395/mt CFR Nhava Sheva in the west, compared to $385-390/mt CFR a week ago.
Similarly ex-Europe, HMS I/II offers are up to $370-380/mt CFR, sources said.
Domestic scrap availability is tightening as scrap yards are facing supply disruptions in gas used for cutting operations. But, despite this, imports are not a viable option given the fresh round of depreciation of the Indian rupee, lurching close to INR 95 to the US dollar, which has increased the landed price of imports.
At the same time, delivery timelines are uncertain owing to the war in the Middle East, and such delays have resulted in cash flow and interest rate costs for an importer, a trader said.
“Even though finished steel prices are hardening amid rapid restocking based on fears over tightening supplies, the fact is that mills are also uncertain of their ability to maintain output levels in the face of disruptions of energy supplies. Hence, they are risk-averse in restocking high-priced raw materials,” a Mumbai-based ferrous and non-ferrous scrap trader said.
