Import scrap prices in India have showed little change over the past week amid inactive market conditions with induction furnace operators lacking confidence in committing deals, while sellers have been unwilling to adjust prices to push sales at a time of improvements seen in global markets, SteelOrbis learned from trade and industry circles on Wednesday, October 22.
Ex-UK/Europe containerized shredded scrap has been reported in the range of $355-360/mt CFR Nhava Sheva port in the west, unchanged week on week. Ex-UK offers for HMS I/II (80:20) are also stable, at around $320-325/mt CFR.
However, most offers did not elicit any response owing to the lack of buyers in the market. While buyers in trade circles are out of the market for the festival holidays, induction furnace operators have been unwilling to commit import bookings at a time when steel long product prices are on a rapid downtrend and currency risks are rising from the volatile Indian rupee, the sources said.
They pointed out that secondary mills have preferred local sourcing to meet low raw material requirements as furnaces are operating at lower capacity utilization rates since stocks of finished products are on the higher side across mills and distributors.
Local scrap prices have remained stable at INR 30,500/mt ($348/mt) ex-Mandi Govindgarh but are still considered a better option to avoid import risks, the sources added.
“Sellers are declining even stray low bids as they are under little pressure to push sales at a time when scrap prices are slowly gaining in key global trade centers. Local traders are on holidays while secondary mills are avoiding imports amid multiple risks,” a Mumbai-based distributor said.
