Import scrap prices in India have remained unchanged over the past week amid muted trade activity with induction furnace operators lacking confidence in making any trades under the dual pressures of very low finished steel prices on one hand and the local currency falling to yet another historical low, SteelOrbis learned from trade and industry circles on Wednesday, November 5.
Ex-UK/Europe containerized shredded scrap prices are stable in the range of $353-357/mt CFR Nhava Sheva port in the west and, even though some sellers are willing to close deals at the lower end of the range, trade conditions have remained almost silent as bids have not exceeded $351/mt CFR.
Similarly, ex-UK offers for HMS I/II (80:20) have also remained stable, at $315-320/mt CFR.
According to the sources, a Gujarat-based furnace operator cum scrap trader reported a booking of a mixed cargo of 3,000 mt at the average price of $344/mt CFR Kandla port in the west.
It was pointed out that, with average induction furnace capacity utilization levels falling week on week and with as many as 150 small mills shutting down operations coupled with prices on a sharp downward trend, there is neither demand nor confidence among operators to restock with raw materials.
“The local currency is highly volatile and nearing another historical low of INR 88.80 to the US dollar, increasing the effective landed price of imports along with higher hedging costs. With finished steel prices also at a long-term low, imported scrap is not viable,” a Mumbai-based scrap trader said.
Even after local bulk scrap prices showed gains over the past week, local bulk scrap remained a preferred source to meet the limited demand.
Local scrap prices are up INR 800/mt ($9/mt) to INR 30,700/mt ($346/mt) ex-Mandi Govidgarh in the north, while sponge iron prices have gained INR 150/mt ($2/mt) to INR 26,250/mt ($296/mt) ex-Raipur in the central region.