Import scrap prices in India have showed marginal losses over the past week, but trade activity has improved slightly with a few mills concluding bookings buoyed by the recovery in long products prices, which has given a bit more confidence in coping with the rapidly weakening local currency, SteelOrbis learned from trade and industry circles on Wednesday, December 3.
The sources said that ex-UK/Europe containerized shredded scrap prices are reported in the range of $350-352/mt CFR Nhava Sheva port in the west, compared to $350-353/mt CFR a week earlier.
According to sources, buying by most induction furnace operators has been confirmed for ex-Australia materials, which have been offered at slight discounts.
A southern India-based induction furnace operator has reported a trade for 5,000 mt of ex-Australia shredded scrap at $348/mt Chennai port, while another central India-based furnace also booked a 3,000 mt tonnage of the same origin at $347/mt CFR Chennai.
Another trade for ex-UK shredded scrap was reported by a Gujarat-based secondary mill cum trader for 5,000 mt at $352/mt CFR Kandla port in the west.
The SteelOrbis reference price for import shredded scrap has settled at $347-348/mt CFR, down by $1.5/mt on average over the past week.
“There is slight recovery in demand, following the hardening of finished long product prices. But purchases are selective and concluded only after sellers have adjusted offers slightly,” a Mumbai-based trader said.
“The recovery in finished steel prices is giving some confidence to buyers to overcome the negatives of the rapidly depreciating rupee inching to another historical low of INR 90.00 to the US dollar. But the currency volatility is expected to increase in the coming days and can reverse the improvements in trade activity,” he added.
