Import scrap prices in India have remained largely stable over the past week amid muted trade activity as induction furnace operators have remained cautious in committing bookings due to uncertain finished steel prices and the depreciation of the local currency, SteelOrbis learned from trade and industry circles on Wednesday, August 13.
Sources said that ex-UK/Europe containerized shredded scrap offers are almost stable from last week at $365-370/mt CFR Nhava Sheva port in the west, while ex-UK origin HMS I/II (80:20) scrap prices are also stable, at $330-340/mt CFR.
The sources said that a cargo of 8,000 mt of European origin shredded was confirmed to have been sold by a Gujarat-based scrap trading firm cum induction furnace operator at $365/mt CFR Kandla port.
However, ex-Australia containerized shredded scrap was quoted slightly higher, at $366-370/mt CFR Chennai, versus $360-365/mt CFR seen last week, but no confirmed deals were reported in the market.
“Generally, neither price nor demand are supportive of import sourcing. The rebar market is highly volatile and does not lend confidence to furnace operators in passing on the higher cost of imports to consumers. Also, the rupee breaching previous historical low and consolidating above the INR 87.00 to the US dollar mark has pushed up the landed price in the local currency and also increased insurance and logistical costs,” a Mumbai-based scrap trader said.
“Import activity will remain low, until the monsoon ends around October and mills reassess their raw material requirements for the busy season,” he added.