Import scrap prices in India have edged lower over the past week amid a combination of the steadily depreciating local currency, uncertain rebar prices, and year-end considerations contributing to weak demand and silent trade activity, SteelOrbis learned from trade and industry circles on Wednesday, December 17.
Sources said that ex-UK/Europe containerized shredded scrap offer prices have declined to the range of $346-348/mt CFR Nhava Sheva port in the west, compared to $350-352/mt CFR a week ago. Bids have fallen to $345/mt CFR at best, and so the reference price for shredded scrap has fallen by $1-2/mt over the past week to $345-347/mt CFR.
However, ex-UK HMS I/II (80:20) is quoted higher in the range of $315/mt CFR, compared to $310-315/mt CFR a week ago.
The sources said that the single biggest factor stalling any import trading is the Indian rupee continuing to repeatedly hit historical lows against the US dollar, currently standing at $1 = INR 91.00. This not only increases the landed price of imported scrap but also increases currency hedging risks, with weak rebar prices a big disability for secondary mills in passing on the higher raw material costs to consumers.
“We do not see any appetite for imported scrap. Currency volatility and weak finished steel prices will sustain the silent import trade activity. Local sponge iron offers a more viable option for induction furnace operators,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“We also are not restocking imported raw material. We are more focused on aggregating local scrap to serve our customers as we cannot risk inventories of high-price imported material,” he added.
