India’s import scrap prices have slipped amid thinning market activity and with the combination of the local currency hitting another historical low, the softening of local scrap and sponge iron prices, and the uptrend seen in the rebar trade tapering off, SteelOrbis learned from trade and industry circles on Wednesday, August 31.
The ex-Europe and ex-UK containerized shredded scrap prices are reported at $475-485/mt CFR Nhava Sheva, lower than $490-500/mt CFR a week ago and down from $485-495/mt CFR seen on Friday.
According to the sources in trade circles, West African origin bulk scrap (HMS I/II 80:20) price has been reported at $455/mt CFR Kandla port in the west, compared to $463/mt CFR a week ago. Ex-Dubai bulk HMS I/II 80:20 scrap offers have been reported at $470-475/mt CFR, but no deals were concluded at the higher prices.
A local trading firm reported a deal for 2,000 mt of ex-Europe origin shredded scrap at $480-485/mt CFR Nhava Sheva. Also another deal for imported shredded scrap was done at $475/mt CFR Nhava Sheva this week.
“In the immediate term, the local rupee touching a historical low of INR 80.00 to the US dollar is the biggest risk to import trade. At the same time, a lot of scrap volumes are being diverted to the sub-continent as the mounting energy crisis in the west is likely to force western furnace operators to go slow in increasing production levels and hence would impact raw material demand,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“In the local market, scrap prices are down INR 800/mt ($10/mt) over the past week and sponge iron prices are down by INR 500/mt ($6/mt). Hence, local sourcing and avoiding volatile currency risks seem to be the preferred option for secondary mills,” he added.