Imported ferrous scrap prices in India have continued to gain strength with the appreciating local currency providing support for a cautious revival of buying interest among secondary steel mills, SteelOrbis has learned on Wednesday, September 9.
Market sources said that ex-US containerized shredded scrap prices have edged up by $4-6/mt over the past week to $314-324/mt CFR Nhava Sheva port in the west. Stray deals were reported at marginally higher levels for shredded scrap originating from the UK at around $328/mt CFR.
Traders said that the appreciating rupee which has gained to levels of above INR 73 to the US dollar during the past week, up from levels of INR 75 to the dollar last month, has partly compensated for the increase in the imported scrap price in dollar terms, resulting in a slight improvement in buying from larger secondary steel mills.
However, the traders pointed out that, while sentiments and buying in the international scrap markets has been showing significant buoyancy, the mills in India have been hamstrung by low rebar prices and demand as producers have also been facing tight credit availability from lending institutions to fund larger volume import contracts.
Market traders said that a secondary steel mill based in Raipur in central India has concluded a trade for ex-US containerized shredded scrap totaling around 20,000 mt for November at around $314-318/mt CFR Nhava Seva.
A Maharashtra-based steel mill has concluded a November delivery deal for 25,000 mt of containerized ex-US shredded scrap at a price of around $320-324/mt CFR, the sources said.
An eastern India-based electric arc furnace route secondary steel mill has reported a deal for 20,000 mt of ex-UK shredded scrap at a price of around $328/mt CFR, the sources added.
It is reported that another eastern India-based secondary steel mill has concluded a trade for bulk HMS I/II ex-UAE totaling around 12,000 mt at $309-310/mt CFR Haldia port in the east.
Traders said that the local scrap market has also moved up during the past week, as medium-scale secondary steel mills have been looking for smaller volumes of raw material. Local scrap prices gained INR 500/mt ($7/mt) to INR 25,100/mt ($341/mt) ex-stockyard at Mandi Govindgarh in the north. Prices have edged up INR 300/mt ($4/mt) to INR 23,000/mt ($313/mt) at Alang in the west.
$1 = INR 73.60