Import scrap prices in India have edged down but have still failed to find buyers with mills reeling from one of the most prolonged slumps in long product prices and with the local currency hitting another historical low against the US dollar, making imports costlier, SteelOrbis learned from trade and industry circles on Wednesday, July 24.
Indicative ex-UK/Europe containerized shredded scrap prices have been reported at $410-415/mt CFR Nhava Sheva port in the west, with a few sellers quoting higher at $420/mt CFR, compared to $415-425/mt CFR offers a week ago, but there have been no buyers. Bids are still rare and are at $405/mt CFR at best.
Prices for HMS (80:20) of ex-UK origin in containers are at $385-390/mt CFR Kandla port, compared to $395-405/mt CFR a week ago, but again there have been no takers.
Trade circles maintain that demand for raw material is extremely low and no one is interested in the higher risk involving imports as most induction furnace operators are planning to bring down plant utilization levels further amid mounting inventories of rebar and the sustained fall in prices.
They pointed out that the Indian rupee has touched a historical low of INR 83.70 against the US dollar and this has made imports costlier and unviable at a time when local rebar prices are on a sustained downtrend with further downside risks.
“The Indian budget on Tuesday maintained nil import duty on imported scrap. But this did not have any impact on trading sentiments. The fundamental demand and pricing of finished steel is very weak and neither traders nor mills have any appetite to take risks on imports. The slight fall in import price does not compensate for higher prices in rupee terms after the depreciation of the local currency,” a Mumbai-based ferrous and non-ferrous scrap dealer said.