Indian imported scrap price showed marginal changes during the past week amid negligible trade activity with steadily declining finished steel prices and depreciating local currency undermining secondary mills’ confidence in restocking raw materials, SteelOrbis learned from trade and industry circles on Wednesday, June 18.
Furthermore, induction furnace operators continued to prefer local scrap to meet small volume requirements with domestic price inching lower even as sponge iron, another alternative, showed signs of hardening.
Ex-UK/Europe containerized shredded scrap offers were at $360-362/mt CFR Nhava Sheva port in the west, compared to $360-365/mt CFR a week ago, but no deals were confirmed in the market with bids still reported below the $360/mt CFR mark.
Similarly, offers for HMS I/II (80:20) of UK origin were reported at $340-342/mt CFR, compared to $340-345/mt CFR a week ago, and bids lower at $330-335/mt CFR with no confirmed trades during the week, the sources said. Nevertheless, a trade of ex-West Africa HMS scrap was reported at $330-335/mt CFR Mundra.
With secondary mills planning output curbs in view of the falling price of finished steel particularly, long products, demand for raw materials was depressed. Even for limited requirements, mills were preferring local sourcing where local scrap prices continued to seek lower levels. Bulk scrap price was down INR 200/mt ($2/mt) at INR 33,100/mt ($384/mt) ex-Mandi Govindgarh, with discounts on offer ranging 2-3 percent.
“Low demand combined with Indian rupee depreciating to hit another low of INR 86.00 against US dollar makes imported scrap very risky. Small volumes are better met locally. Even distributors like us are not importing and prefer brokering sales of local scrap,” a Mumbai based trader said.
“Some limited busheling scrap volumes are imported at prices around $370-375/mt CFR of ex-Germany origin. But these are mainly for specialized foundry operations and of limited trade,” he added.
$1=INR 86.31