Import scrap prices in India have remained largely stable with some negative bias amid stagnant trading conditions and, even though some tightening of local supplies has been reported, secondary mills have been reluctant to look at imports given the volatility of the local currency and the delays in shipping, SteelOrbis learned from trade and industry circles on Wednesday, September 18.
Ex-UK/Europe containerised shredded scrap prices are reported at $390/mt CFR Nhava Sheva port in the west compared to $390-395/mt CFR last week. Ex-UK HMS scrap (80:20) scrap is stable at $365-370/mt CFR Kandla port, while suppliers from West Africa could offer $5-10/mt discounts on these levels.
According to sources, supplies of scrap from the northern Indian trading hub of Mandi Govindgarh are heard to be tightening and secondary mills have not been getting ready supplies.
But still, mills have not been looking at imports owing to the volatility of the Indian rupee against the US dollar, higher currency hedging costs and with shippers plying through the Middle East delaying deliveries, the sources said.
“The domestic scrap market is in an extended stagnant state. There is no post-monsoon revival in demand for rebar and prices are too soft for mills to absorb higher costs of imported raw materials,” a Mumbai-based distributor said.
“Globally scrap prices could rise post-October. But mills will resist as finished steel prices will remain weak. Indian mills can be expected to stay out of the import market for some time,” he said.