Import scrap prices in India have remained firm over the past week and, while overall trade activity has remained muted amid continued logistical challenges and the weak local currency, a few very low-volume trades have been concluded amid tight local scrap supplies, SteelOrbis learned from trade and industry circles on Wednesday, April 8.
Sources said that ex-UK/Europe and Australia containerized shredded scrap offers are in the range of $400-412/mt CFR Nhava Sheva port in the west and the lower prices at $390-395/mt CFR seen last week have disappeared as suppliers have had opportunities to sell more in alternative markets in South Asia such as Pakistan.
Ex-Europe HMS I/II offers have increased by $5-10/mt over the past week to $380-385/mt CFR, the sources said.
A booking of a small lot of 500 mt of ex-Africa origin and another deal for Australian origin HMS I/II (90:10) are heard to have been done at $390/mt CFR Chennai port in the west.
It was pointed out that these very small import bookings were done by secondary mills facing disruptions in local scrap supplies as yards in northern regions had cut back their cutting operations owing to shortages of natural gas and liquefied petroleum gas (LPG).
“Logistical challenges and high freight rates continue to stall imports. The Indian rupee depreciating to new historical lows against the US dollar also increased the landed price to unviable levels,” a Mumbai-based distributor said.
“Overall demand for raw materials has also remained weak as secondary mills are facing uncertainties over maintaining output levels, owing to disruptions of energy supplies, and hence they are tending to avoid raw material restocking,” he added.
