Import scrap prices in India showed marginal changes, and trade activity remained largely silent in the face of the continued weakening of the local currency and secondary mills submitting unworkable low bids amid declining finished steel prices and mounting inventories, SteelOrbis learned from trade and industry circles on Wednesday, May 27.
Sources said that ex-UK/Europe containerized shredded scrap offers were kept mostly unchanged in the range of $390-400/mt CFR Nhava Sheva port in the west, but with stray bids reported at $375-380/mt CFR, sellers refrained from concluding any contracts.
Similarly, ex-UK HMS I/II offers were reported at $360-365/mt CFR, while some other origins of HMS in containers were available at $355/mt CFR, but cheaper local scrap remained the preferred raw material choice to meet the limited demand of mills.
It was pointed out that secondary mills were facing the dual pressures of declining prices and rising inventories. At the same time, with the government advising austerity and reductions in energy consumption, mills are lowering plant output levels.
This was reducing raw material demand, and even for the limited requirements, mills preferred lower-priced local bulk scrap and avoided the risks associated with the rapidly depreciating rupee against the US dollar, the sources said.
“At a time of steadily weakening finished steel prices and slowing stock movement, secondary mills have no appetite for imports involving risks related to currency volatility and higher landed prices. Sellers are also not willing to adjust prices to push sales,” a Mumbai-based ferrous and non-ferrous trader said.
