Indian imported scrap offers were stable or nudged up but higher levels were resisted by buyers lacking confidence to restock immediately, and bid-offer disparities contributed to very rare deals at small discounts, SteelOrbis learned from trade and industry circles on Wednesday, August 20.
Ex-UK/Europe containerized shredded scrap offers edged up to $370-375/mt CFR Nhava Sheva port in the west compared to $365-370/mt CFR a week ago, but with bids reported lower at $360-365/mt CFR at best.
Sources said that a deal for 5,000 of containerized shredded scrap ex-Australia was confirmed by a southern Indian based induction furnace operator at $360/mt CFR Chennai port. This is signaling that the seller had to provide a discount to attract buyer, offering at $365-370/mt CFR last week.
The Indian scrap import reference price is still at $360-370/mt CFR.
Prices for HMS I/II (80:20) of UK origin are unchanged at $330-340/mt CFR, but no deal was confirmed in the market.
According to the sources, raw material demand from the secondary steel sector was still weak as furnace operators lacked confidence to restock. Rebar prices had improved ahead of end of monsoon season but recovery was not strong to ensure higher margins for producers, contributing to weak raw material demand.
At the same time, sustained depreciation of the Indian rupee against the US dollar current lower than INR 87.00 a dollar contributed to pushing up landed price and insurance and currency hedging costs.
“Unless there is significant improvement in finished steel prices, post monsoon, there will be no urgency to book imports, keeping outlook on raw materials very flat,” a Mumbai based trader said.