Import scrap prices in India have showed declines with buyers showing no inclination to commit fresh bookings amid extremely bearish conditions in the local long products market and the local currency breaching another historical low, entailing higher currency risks, SteelOrbis learned from trade and industry circles on Wednesday, June 26.
Sources said that ex-Europe/UK containerised shredded scrap has been quoted in the range of $412-417/mt Nhava Sheva port in the west, while HMS (80:20) scrap has been quoted at $385-395/mt CFR, compared to $391-395/mt CFR a week ago.
According to the sources, only a nominal cargo for around 500 mt of ex-West Africa HMS scrap is reported to have been booked at around $400/mt CFR Mundra port in the west, with at least two traders claiming the price to be “too high”.
“Secondary mills are operating at levels of 70-80 percent and, given the extreme prolonged downtrend in long product prices, the talk is that it could fall to as low as 50 percent. This clearly precludes any immediate raw material restocking. The local currency plunging to a historical low of INR 83.60 to the US dollar not only makes imports costlier but increases currency hedging risks,” a Mumbai-based trader said.
“There is no clarity on macroeconomic policy-making from the new government nor are there any expectations of a stimulus, without which the finished steel market is unlikely to rebound. Hence, imports are not an urgency for users,” he said.