Import scrap prices in India have posted limited changes over the past week with bearish sentiments still prevailing amid inactive market conditions, resulting from weak finished steel prices and the weak local currency, coupled with anticipation of further declines in scrap offers, SteelOrbis learned from trade and industry circles on Wednesday, December 11.
Ex-UK/Europe containerized shredded scrap offer prices are unchanged at $380-385/mt CFR Nhava Sheva port in the west, but local buyers have been reluctant to rush into bookings anticipating that prices will fall further. Only sporadic deals for ex-US shredded were reported at $379-380/mt CFR west coast. The only deal with a discount was for ex-Australia shredded scrap at $370-375/mt CFR. So, the import scrap reference price has settled at $375-380/mt CFR, versus $380/mt CFR last week.
Also, ex-UK and ex-Europe HMS I/II (80:20) offers to India are most unchanged at $360-370/mt CFR, versus $365-370/mt CFR, while prices from West Africa for the same grade have been reported at $360/mt CFR and those from Australia at $355-360/mt CFR.
The sources said that there was no urgency in looking at imported restocking considering the softening of scrap prices in the local market in India and sufficient availability for secondary mills already operating at low capacity averaging around 75 percent amid rising inventories and falling rebar prices.
“We assess that the shredded scrap price at $15/mt and HMS scrap at $20/mt lower than current offers could trigger limited buying. Or else the inactive market conditions will be prolonged,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“The rapidly depreciating Indian rupee is also not conducive for concluding import contracts. Sellers need to consider the resultant rise in the landed price of imports while submitting offers. Or else buyers will not be interested like now,” he said.