Indian import scrap market showed divergent trends and high volatility with prices surging but tailing off towards the end of the week on combination of suppliers claiming shortage of higher volumes, uncertain demand from local secondary steel mills and the local currency depreciating to a 8-week low increasing cost of imports, SteelOrbis learned from trade and industry circles on Wednesday.
Containerized shredded scrap price hit a week’s peak of $530-540/mt CFR Nhava Sheva port in the west with deals reported at $535-540/mt CFR.
However, the sources said that import prices fell back towards the end of the week to around $525-530/mt CFR, which was still higher than deals concluded at late last week at $516-518/mt CFR.
“The market is showing very divergent trend owing to conflicting demand-supply fundamentals. On the supply side sellers are saying that availability of higher volumes is very tight. On the demand side, local secondary steel mills do not have the liquidity to sustain restocking of raw materials while the Indian rupee sliding to a 8-week low against the dollar has also pushed up import costs,” a Mumbai based trader said.
“Bellwether market like Turkey has been quiet during the week. Hence initial contrarian high activity seen in Pakistan and India early in the week tapered off as buyers eased out of the market,” he added.
Sources said that a large secondary steel mill at Raipur in central India reported a deal at week’s high price of around $540/mt CFR Nhava Sheva port, but the volume could not be ascertained in the market.
A Gujarat based ferrous scrap trading firm and a secondary steel producer reported a deal at around $535/mt CFR, the sources said.
A Maharashtra based steel mill concluded a deal at lower levels towards close of the week at a price of around $525/mt CFR, the sources added.
Traders said that local price scrap remained stable during the past week quoted in range of INR 39,000-40,000/mt ($524-538/mt) ex-stockyard at Mandi Govindgarh in the north.
$1= INR 74.30