Indian imported scrap prices remained stable during the week with some sellers quoting at higher levels citing tightening of supplies, but local currency volatility weighed in on the market resulting in silent trade conditions, SteelOrbis learned from trade and industry circles on Wednesday, December 24.
Sources said that while ex-UK/Europe containerized shredded scrap was stable at $346-348/mt CFR, Nhava Sheva port, but some offers were cited higher in the range of $350-354/mt CFR. So, the reference price has been settled at $346-352/mt CFR with the midpoint at $349/mt CFR, up by $3/mt from last week.
At the same time, ex-UK HMS I/II (80:20) offers edged up to $320-323/mt CFR compared to levels of around $315-320/mt CFR a week ago. Some European HMS I/II (80:20) can be quoted still a bit below a $320/mt CFR mark.
According to the sources, a few sellers were pushing up offer levels against backdrop of tighter supplies in key bellwether markets. But with the Indian rupee breaching another new historical low of INR 91.00 a US dollar, and resulting high landed costs of imports, buyers were on the sidelines.
The Reserve Bank of India (RBI) was reported to be supporting the rupee against the dollar, but trade circles said that no importer or induction furnace operator were willing to carry risks of hedging currency and volatile currency involved in concluding trades.
“The market is showing mixed sentiments. Sellers are optimistic about prices. But buyers are nervous over the sinking local currency and cannot afford import risks. Both buyers and sellers are under different market dynamics. We do not see much trade activity in current situation,” a Mumbai based trader said.
