Import scrap prices in India have remained largely stable with a negative bias amid inactive market conditions over the past week, as buyers have not been interested in deals in view of the high volatility of the local currency and the availability of cheaper local alternatives, SteelOrbis learned from trade and industry circles on Wednesday, February 12.
Sources said that ex-UK/Europe containerized shredded scrap offers have been kept stable at $375/mt CFR Nhava Sheva and some sellers have been willing to adjust offers to $370/mt CFR, but the bids submitted were even lower at $360-365/mt CFR, and so no deals could be concluded.
The reference price for containerized shredded scrap in India has softened by $5/mt over the past week to $370/mt CFR.
The sources said that ex-UK origin HMS scrap was quoted at $355-360/mt CFR Nhava Sheva and some offers at lows of $350/mt CFR. However, the sources said that secondary mills were preferring local sourcing of scrap which was priced at least INR 1,700/mt ($20/mt) cheaper compared to cost of landed price of imports inclusive of port and clearing charges.
“Not only is the landed price of imports too high, the risks of trade involving the extremely high volatility of the rupee against the US dollar is making deals unviable for most small and medium-scale secondary mills and trading firms,” a Mumbai-based ferrous and non-ferrous trader said.
“There are a lot of scrap supplies ex-Mandi Govindgarh in Punjab in the north and Jalna, Maharashtra, in the west. Local scrap suppliers are also offering good volume discounts, making such supplies much more price advantageous than risky imports,” he said.