Import scrap prices in India have softened slightly over the past week, but have still failed to elicit buying interest, a failure attributed to the weak long products market, the volatility of the local currency, and uncertainty over secondary mills’ ability to maintain output levels amid energy supply disruptions, SteelOrbis learned from trade and industry circles on Wednesday, April 15.
Ex-UK/Europe containerized shredded scrap prices are mainly at $400-405/mt CFR Nhava Sheva port in the west, lower than $400-412/mt CFR a week ago. Even though small discounts from the $400/mt CFR mark are possible, sellers are inactive because even a further decline would be unlikely to boost purchases significantly.
The reference price for shredded scrap in India has settled at $400/mt CFR, down $3/mt on average from the previous week.
Ex-Europe HMS I/II offers are in the range of $380-382/mt CFR, compared to $380-385/mt CFR a week ago.
Sources said that, apart from the recent weakness emerging in the long products market, buyers have also been reluctant to make commitments against the backdrop of the volatility of the Indian rupee against the US dollar, increasing the landed price of imported raw material, coupled with risks of hedging currency against import trades.
Local scrap supplies have also been tight as scrap yards in northern India have been forced to reduce cutting operations owing to disruptions in supplies of gas. But, despite this, secondary mills are not looking at import options owing to the high price and risks involved in such trades.
