In the past week, import scrap prices in India showed early signs of increasing as sellers submitted higher offers, but failed to be sustained amid inactive market conditions in which buyers remained cautious due to the prolonged depreciation of the local currency and the festival holidays, SteelOrbis learned from trade and industry circles on Wednesday, October 5.
Sources said that early gains were mostly reported from Europe origin containerized shredded scrap, which moved up to $455-465/mt CFR Nhava Sheva, but then fell back to $450-460/mt CFR, stable from a week ago.
Towards the close of the week, even one offer was reported at as low as $430/mt CFR Kandla port in the west for ex-EU origin bulk scrap, but no deal was reported, indicating a bearish mood among local buyers.
Ex-UK containerized shredded scrap price was reported at $450-455/mt CFR, marginally down $2/mt from previous levels.
Sources said that ex-Europe scrap (HMS 80:20) offers in containers were submitted at $445/mt CFR early in the week and later moved down to $438/mt CFR in the absence of any buying interest.
The only deal was reported by a Mumbai-based trading firm for 2,000 mt of ex-EU containerized shredded scrap at $450-455/mt CFR, trade sources said.
“The rapid continuous slide of the local currency against the US dollar is the single biggest reason for the lack of buying appetite. Neither traders nor secondary mills, mostly in medium-scale sectors, have the ability to bear currency hedging costs. Higher prices are hence not being sustained,” a Mumbai-based trader said.