Import scrap prices in India have weakened over the past week with induction furnace operators being cautious amid soft finished steel prices, ample local supplies and risks of a rapidly depreciating local currency, SteelOrbis learned from trade and industry circles on Wednesday, November 12.
Ex-UK/Europe containerized shredded scrap offers are in the range of $352-355/mt CFR, compared to $353-357/mt CFR a week ago, but, with bids at lows of $345-350/mt CFR, no deals were confirmed in the market. The reference price for imported shredded scrap in India has lost $4/mt on average over the past week to $345-355/mt CFR Nhava Sheva.
Similarly, ex-UK HMS I/II (80:20) offers are in the range of 310-315/mt CFR, compared to $315-320/mt CFR last week, amid silent trade activity.
According to the sources, most induction furnace operators have cut back production levels in reaction to weak finished steel prices, resulting in a fall in raw material requirements, which are being met through sufficiently available local scrap, which has remained a more viable option despite the recent uptrend.
At the same time, imports are not a preferred source considering currency risks with the Indian rupee at a historical low of INR 88.64 to the US dollar, the sources added.
Local bulk scrap prices have continued to inch up, gaining INR 300/mt ($3/mt) to INR 31,000/mt ($350/mt) ex-Mandi Govindgarh in the north, while the price of another alternative, sponge iron, is up INR 350/mt ($3.50/mt ) to INR 26,600/mt ($300/mt) ex-Raipur in the central region.
