Imported scrap prices in India have inched up with sellers citing higher collection costs, resulting in local buyers pulling out of the market after assessing offers and being reluctant to accept the price increase and the rise in landed prices after the local currency hit a new historical low, SteelOrbis learned from trade and industry circles on Wednesday, July 31.
Ex-UK/EU containerised shredded scrap offers have settled at $413-420/mt CFR Nhava Sheva port in the west compared to $410-415/mt CFR a week ago. But local secondary mills have pulled out of the market, also as the rupee has depreciated to a new low of INR 83.73 against the US dollar over the past week. Deals for shredded have been absent and buyers’ price ideas have stayed at $400-405/mt CFR.
Ex-UK HMS (80:20) scrap prices, however, have remained stable at $385-390/mt CFR, but did not find any takers either.
“There is little interest among secondary mills in restocking raw materials at higher prices as they are not in a position to increase finished steel prices. On the contrary, induction furnace operators are lowering plant utilisation levels to rein in costs when finished steel prices are under pressure,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“The few buyers who showed interest retreated on receiving offers at higher levels, with most preferring sponge iron as charging material for furnaces as it is more cost-effective,” he said.