Import scrap prices in India have softened amid weak demand as secondary mills have shifted to local sourcing, as there were sufficient imported stocks and given that the local currency is depreciating to a historical low against the US dollar.
Ex-Europe and ex-US containerized shredded scrap has been quoted in the range of $423-425/mt CFR Nhava Sheva port in the west, compared to $425-430/mt CFR in general last week, but no deals have been reported over the past week.
A deal for 500 mt of ex-UK HMS scrap was concluded at $412/mt CFR Mundra port in the west, compared to $414/mt CFR a week ago.
“Demand for imported scrap is falling in the local market. There are improved local supplies and fast delivery timelines on the one hand and on the other hand the Indian rupee breaching INR 83.00 to the US dollar, a historical low, has increased the costs of imports. A price correction is showing up and buyers are deferring new deals,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“There is a trend among induction furnace operators to reduce capacity utilizations and they have built up good inventories over the past month. This is expected to lower raw material demand and local supplies are good to meet the limited requirement,” he said.
An official at a secondary mill said that there is some pressure emerging in the rebar market which seems due to the “overheating” after recent surges in prices, and this is prompting some mills with good inventories to lower output and hence there is no pressure to conclude risky import deals.