Import scrap prices in India have remained stable over the past week, but even the stray trading activity seen earlier has fallen silent, with buyers retreating for the holidays or due to the impact of extended rains in regions, while sellers have rejected low bids, taking their cue from the firmness seen in the global markets, SteelOrbis learned from trade and industry circles on Wednesday, Wednesday.
Sources said that ex-UK/Europe containerized shredded scrap offers have been reported at unchanged levels in the range of $360-365/mt CFR Nhava Sheva port in the west, while a few bids were heard at lower levels of $354-356/mt CFR, but sellers were unwilling to adjust prices, supported by the slight hardening seen in other global markets.
Offers for HMS I/II (80:20) scrap of UK origin have been quoted in the range of $325-330/mt CFR, but even the limited demand from induction furnace operators has been blocked by cheaper local supplies.
Local scrap prices are hovering around INR 31,700/mt ($357/mt) ex-Mandi Govindgarh in the north, down INR 300/mt ($3/mt) on week-on-week basis. The price of sponge iron, another preferred local alternative, has also declined, falling by INR 900/mt ($10/mt) to INR 28,000/mt ($316/mt) ex-Raipur in the central region.
“Seasonal rains are dampening demand for construction grade long products. Hence, raw material demand from induction furnace operators is also at a low level. Even this limited demand is being met from cheaper local alternatives,” a Mumbai-based distributor said.
“Traders too are cautious on imports as the depreciation of the Indian rupee against the US dollar has increased currency risks and results in a higher landed price. Sellers are also unwilling to discount sales since, barring the Asian markets, scrap prices are showing signs of improvement in most other markets,” he added.