Import scrap prices in India have showed a slight upward bias amid increased market activity as induction furnace (IF) operators were seen to be restocking before the post-monsoon ‘busy season’ ahead, even though there has been cautiousness over a possible correction and the rapid depreciation of the local currency against the US dollar, SteelOrbis learned from trade and industry sources on Wednesday, August 9.
The reference price for shredded scrap in containers has settled at $420/mt CFR, slightly higher than $415-420/mt CFR seen late last week, but offers are up to $425/mt CFR already. A trade for 1,000 mt of ex-UK containerized shredded scrap has been confirmed at $420/mt CFR Mormugao port, slightly higher than the trades concluded at around $415-417/mt CFR in the second half last week.
Another trade for 1,000 mt of ex-Brazil bushelling scrap was reported at $440/mt CFR Mundra port in the west.
Prices for HMS I/II (80:20) in containers have been at $390-395/mt CFR, versus the tradable level at near $370/mt CFR a week ago. There has also been a rumor that a trade for an aggregate of 35,000 mt of ex-Australia bulk HMS I/II (80:20) scrap was booked by a consortium of traders at $390/mt CFR Mumbai port, but this could not be confirmed by the time of publication.
“There are some compulsions on secondary mills to replenish raw materials, as they are expecting to increase plant output from the end of September onwards. But a section of smaller furnace operators is still cautious over the sliding India rupee against the US dollar and the higher cost of currency hedging,” a Mumbai-based ferrous and non-ferrous trader said.
“There is also an expectation of a correction among buyers. But sellers are not showing much sign of lowering prices immediately. Scrap deals can increase later in the month provided the latest strong rebound in rebar prices is sustained,” he said.
According to another trader, who claimed he had deferred at least two offers, weak demand in key western markets would force sellers to increase volumes on offer in the Asian region, triggering a price correction over the next few weeks