Import scrap prices in India have decreased over the past week, with buyers unwilling to conclude trades in the face of the depreciating local currency and weak finished steel prices, SteelOrbis learned from trade and industry circles on Wednesday, December 4.
The ex-UK/Europe containerized shredded scrap reference price stands at $380/mt CFR, down from $380-390/mt CFR last week. Offers have declined to $380-385/mt CFR Nhava Sheva port in the west, down from levels of $390-395/mt CFR a week ago, but buyers have been looking now for $375/mt CFR. Ex-UK HMS scrap has been quoted unchanged at $365-370/mt CFR, but the same grade from West Africa has been offered at $360-365/mt CFR.
However, stray bids for bulk scrap have been heard at around $350-355/mt CFR, but were rejected by sellers, contributing to the inactive market conditions.
The sources said that trading is unlikely to revive. Still there was more stability in the local currency which had touched a new historical low of INR 84.73 against the US dollar, which not only increased the landed cost of imports but also led to the higher cost of currency hedging by importers.
The sources said that sustained declines in finished steel prices have undermined confidence in the market and secondary mills are heard to be cutting back production levels and hence importing raw materials has not been a priority of local buyers.
There has been a lot of talk about the government imposing a 25 percent safeguard duty on imported steel and, unless that is given effect and contributes to stabilizing finished steel prices, import trade in raw materials is expected to be at a near-standstill for the time being, the sources said.