Import scrap prices in India have moved down slightly over the past week, but no deals have been reported as bids were even lower in reaction to weak finished steel prices, currency risks and domestic alternatives continuing to be the preferred cheaper option for most induction furnace operators, SteelOrbis learned from trade and industry circles on Wednesday, October 15.
Ex-UK/Europe containerized shredded scrap is quoted in the range of $355-360/mt CFR Nhava Sheva port in the west compared to $360-365/mt CFR a week ago, but most bids have been at least $5/mt lower and rejected by most sellers.
Similarly, offers for HMS I/II (80:20) scrap of UK origin have also dropped, to $320-325/mt CFR compared to $325-330/mt CFR a week ago, but bids are about $10/mt lower, resulting in no deals being confirmed in the market.
The sources said that currency risks of imports have also increased, with the Indian rupee at a historical low of INR 88.77 to the US dollar and forecast to touch INR 89 to the dollar, adding uncertainty to the conclusion of import contracts.
At the same time, the downtrend in the long products market has gained momentum, triggering nervousness and caution among induction furnace operators as regards restocking raw materials. With furnace capacity utilization levels at lows of 65-75 percent, raw material demand has also remained weak.
Even at low plant capacity utilization rates, operators have preferred alternative domestic sources of feedstock such as bulk scrap and sponge iron, the prices of which have continued to move down. For example, local bulk scrap prices have lost another INR 600/mt ($7/mt) to INR 30,500/mt ($345/mt) ex-Mandi Govindgarh in the north, while sponge iron merchant trade prices are down INR 350/mt ($4/mt) to INR 26,800/mt ($303/mt) ex-Raipur in the central region.
$1 = INR 88.37
