Import scrap prices in India have weakened as buyers have stayed on the sidelines amid a combination of weak finished steel prices, sufficient local availability and the depreciation of the rupee, SteelOrbis learned from trade and industry circles on Wednesday, August 14.
Offers for ex-Europe/UK containerized shredded scrap are at $405-410/mt CFR Nhava Sheva port in the west, compared to $410-420/mt CFR a week ago. However, the tradable level and at least one deal early this week were reported at $400/mt CFR or slightly below. HMS (80:20) scrap of UK origin was quoted at $375-380/mt CFR, down from $385-390/mt CFR a week ago, but no deals have been reported so far.
The sources said that, despite the fall in price, it did not attract buying interest as the benefit of lower prices has been negated by the Indian rupee hitting a historical low of INR 84.00 to the US dollar, making the landed price of imports more expensive.
“Secondary mills will not be looking at imported scrap irrespective of price till such time finished steel prices improve. Mills are operating at low-capacity utilizations to check inventory build-up and lower raw material requirements can well be met by local sourcing,” an official at an eastern Indian induction furnace-based mill said.
“We have heard that ex-UK sellers are offering $5-8/mt discounts over the offer price, but there is still no buying interest. With the rupee depreciating, importers will need to bear additional currency hedging costs and this is not acceptable to buyers,” he said.