Import scrap prices in India have showed signs of hardening amid global cues, but buying interest has been negligible, due to the wide bid-offer gaps and secondary mills’ continued preference for local sourcing, SteelOrbis learned from trade and industry circles on Wednesday, March 5.
Offers for ex-UK/ Europe containerised shredded scrap have been quoted in the range of $380-395/mt CFR Nhava Sheva port in the west, compared to $375-390/mt CFR a week ago. However, the reference price has remained stable at $370-375/mt CFR as bids have been reported at $365-370/mt CFR during the past week.
Europe origin HMS I/II (80:20) offers are at $350-355/mt CFR, slightly higher than $340-350/mt CFR a week ago, but at least one deal was signed at $345/mt CFR, signaling that the market in fact has remained stable. Local mills have preferred domestic sourcing despite the rise in prices of both scrap and sponge iron in local trading centres.
According to the sources, imported scrap prices are being quoted higher as US origin offers have been absent because of high freight costs and extended deliveries, while trade activity has been improving at higher levels in Europe. Hence, sellers have not been willing to adjust prices to push sales in the sub-continent.
At the same time, domestic induction furnace operators have continued to prefer local sponge iron and scrap to avoid currency risks with the Indian rupee being again historically weak at INR 87.20 to the US dollar.
The local bulk scrap price has gained INR 300/mt ($3/mt) to INR 33,900/mt ($389/mt) ex-Mandi Gobindgarh in the north and sponge iron has gained INR 400/mt ($5/mt) to INR 31,000/mt ($356/mt), sources said.