Import scrap prices in India have remained stable on the higher side, but trade activity has fallen silent in reaction to the further depreciation of the local currency against the US dollar, the weak demand faced by secondary mills, and disappointment over the national budget presented recently by the government.
Sources said that ex-UK/Europe containerized shredded scrap offers have continued to be at the higher levels of $375-380/mt CFR Nhava Sheva port in the west and the tradable level has been at $375/mt CFR, stable over the past week.
An official at a trading firm dealing in scrap imports said, “We are receiving bids for containerized [shredded] scrap at around $365/mt CFR, but we are not confirming any bookings as this is too low. My imported material suppliers are also not keen to lower prices to push deals, as global prices are holding and sales in neighboring countries are good.”
According to the sources, not many sellers have been active in submitting offers in the Indian local market and they have been unwilling to adjust prices to push deals as they have been getting better realizations from the neighboring markets in Pakistan and Bangladesh.
Offers for HMS (80:20) scrap of EU and UK origin are at $355-360/mt CFR, while small volumes of West African HMS could be sold at $350/mt CFR.
“The market lapses into inactivity largely because of the India rupee breaching the INR 87.00 to the US dollar to touch another all-time low of INR 87.20 to the dollar. The higher landed cost of imported raw material cannot be passed on to customers by secondary mills as demand for finished steel is slacking again. The national budget has been disappointing too for market participants and is unlikely to revive demand, and mills are lacking confidence in trading in high-cost raw materials,” a Mumbai-based distributor said.