Import scrap prices in India have been rather stable in the past week with some small discounts seen, but buying interest has continued to be negligible amid the ongoing rapid depreciation of the rupee and with the usual price recovery of finished steel during the last quarter of the fiscal year proving to be elusive, prompting secondary mills to be cautious as regards restocking raw materials, SteelOrbis learned from trade and industry circles on Wednesday, January 8.
Ex-UK/Europe containerized shredded scrap offers are at $385-388/mt CFR, versus $388-390/mt CFR Nhava Sheva port in the west last week. One deal was rumored at $380/mt CFR, slightly pulling the reference price down to $380-385/mt CFR, down $6.5/mt over the past week.
Ex-UK HMS (80:20) scrap is stable at $370-375/mt CFR, but no significant trade has been confirmed in the market. Only one sale was rumored at $360-365/mt CFR, for non-Europe origin HMS.
According to the sources, while prices of sponge iron, billets and rebars have been increasing slowly, the recovery was slower than typical trends in the last quarter, prompting secondary mills to slow down raw material restocking, particularly for imported scrap.
It was pointed out that, with the Indian rupee weakening historically to INR 85.50 to the US dollar and poised to touch INR 86.00 to the dollar, importers have been unwilling to bear the burden of higher landed costs and additional currency hedging costs.
“We expect the depreciating rupee will keep pushing up the landed price. Hence, trade activity will remain limited,” a Mumbai-based ferrous and non-ferrous trader said.