Sources said that ex-UK/Europe containerized shredded scrap offers are unchanged at $420/mt CFR Nhava Sheva port in the west, while ex-Europe HMS I/II offers are stable at $390/mt CFR or higher.
A few offers for ex-Australia and ex-Africa HMS I/II are reported in the range of $375-380/mt CFR Chennai port in the west, but no deals could be confirmed in the market.
The SteelOrbis reference price for imported shredded scrap has remained stable at $400-420/mt CFR due to low bids from buyers.
According to the sources, secondary mills have been unwilling to restock imported raw material preferring local supplies, which are also tightening owing to the shortage of gas impacting scrap yard cutting operators. Faced with declining long product sales and prices, secondary mills have been looking at dropping mill capacity utilization levels to check inventory rises, and hence overall demand for raw material has been weak.
Furthermore, the Indian rupee depreciating below INR 95.00 against the US dollar, another historical low, has significantly increased the landed price of imports and the cost of hedging foreign currency trades.
“Global scrap prices are stable and inching up, and hence sellers are unwilling to adjust offers to push sales in India. At the same time, secondary mills are not interested in high-cost imports as they lack confidence to pass on the higher cost to consumers at a time when finished steel margins are under strain already,” a Mumbai-based ferrous and non-ferrous trader said.
