Indian imported scrap prices weakened, but rapidly depreciating local currency prevented any workable price to emerge between buyers and sellers coupled with sufficient availability of local scrap, SteelOrbis learned from trade and industry circles on Wednesday.
Sources said that ex-UK/Europe containerized shredded scrap offers softened to the range of $345-355/mt CFR Nhava Sheva port in the west compared to $355-365/mt CFR a week ago. But despite the drop in offer levels, it failed to offset impact of the depreciating rupee against the US dollar, and buyers were unwilling to currency risks.
No offers for HMS scrap of UK origin were heard during the past week. However, some ex-Australia offers for HMSI/II (80:20) were reported at $320-325/mt CFR Chennai port in the south but no deals were confirmed, the sources said.
“The extremely high exchange rate volatility is the single biggest hurdle for buyers. The Indian rupee is rapidly weakening against the US dollar and now inching close to INR 92 to a dollar. At the same time, adjustments in offers from sellers does not offset the increase in landed price and cost of hedging,” a Mumbai based ferrous and non-ferrous scrap dealer said.
“Local supplies of bulk scrap are sufficient to meet immediate demand from induction furnace operators. There is no need for mills to get exposed to import risks under the conditions,” he added.
