Import scrap prices in India have remained largely stable, with a small downward correction in shredded offers, over the past week, but trade activity has been muted significantly by festival holidays and caution over the local currency hitting a historical low against the US dollar, SteelOrbis learned from trade and industry circles on Wednesday, September 20.
Ex-Europe offers have been reported at $430/mt CFR Nava Sheva, while those from the US have been at the slightly lower level of $425/mt CFR. This is versus the reference price for shredded at $430-435/mt CFR last week.
Sources said a deal for 1,000 mt of ex-UK scrap HMS (80:20) was reported among the rare stray deals of the week at $414/mt Kandla port, almost at a par with trades in the earlier week. However, some offers for West African origin HMS have been at lower levels of $410-412/mt CFR.
Another trade was reported for ex-Germany busheling scrap at $456/mt Mundra port in the west, the sources said.
“Global scrap prices are stable currently. But locally secondary mills are not buying. The festivals during the week triggered a pause in business activity and the auspicious closing of books for privately-held firms. In trade circles there is high caution from the Indian rupee hitting a historical low against the US dollar, breaching the INR 83 to the dollar mark, and the resultant rise in currency hedging costs,” a Mumbai-based trader said.
“Imported prices may improve once the festivals are over and suppliers begin to submit new offers. The temporary weakness in the rebar market will also improve and secondary mills are expected to resume raw material purchases from next week onwards,” he said.