Import scrap prices in India are under pressure from soft demand from secondary mills and volatile currency exchange rates, with the wide bid-offer gap keeping trade activity almost silent, SteelOrbis learned from trade and industry circles on Wednesday, April 22. The Indian market has remained among the very few still resisting the uptrend seen in most major outlets.
Sources said that ex-UK/Europe containerized shredded scrap offers prices are at $397-400/mt CFR Nhava Sheva port in the west, compared to $400-405/mt CFR a week ago.
According to sources, domestic availability of scrap has tightened significantly owing to shortage of availability of gas for cutting operations. The supply disruptions prompted some secondary mills to explore import sourcing, but even in such a situation bids have been at $380-390/mt CFR at best.
So, considering buyers’ low price ideas, the reference price for shredded scrap in India has settled at $390-400/mt CFR, moving down by $5/mt on average over the past week.
Ex-Europe HMS I/II offers are in the range of $375-380/mt CFR, slightly lower than $380-382/mt CFR a week ago, but they have still failed to trigger any buying interest. Only one deal for HMS I has been heard at $390/mt CFR.
Furthermore, trade circles pointed out that the high volatility of the exchange rate and the Indian currency being at an historical low of INR 93 to the US dollar, coupled with rising shipping costs, have increased import trade risks and made imports unviable for buyers.
“Local supplies are tight and deliveries uncertain, particularly from northern Indian scrap yards and trading centers around Mandi Govindgarh. But the fresh losses seen in finished steel prices and the higher costs of import trade are keeping secondary mills away from import transactions,” a Mumbai-based ferrous and non-ferrous scrap trader said.
