Import scrap prices in India have been pushed up by sellers, but no deals have been confirmed in the market amid uncertain finished steel prices, the lower capacity utilization rates of secondary mills, and the local currency touching a historical high against the US dollar, further increasing the landed price of imports, SteelOrbis learned from trade and industry circles on Wednesday, November 13.
The ex-UK-Europe containerized shredded scrap reference price has increased by $5-10/mt over the week to $395-400/mt CFR Nhava Sheva as offers have moved up to $400-405/mt CFR. Though bids are still lagging behind, they have increased by $10/mt to $390/mt CFR.
Ex-UK scrap (HMS 80:20) has been quoted at $380-390/mt CFR, compared to $370-375/mt CFR a week ago, but no deals have been concluded, the sources said.
The sources stated that, with finished steel price trending in an uncertain zone, secondary mills are maintaining plant utilization levels at around 80 percent and are in no rush to restock with higher-priced imported raw materials. At the same time, the Indian rupee has touched a historical high of 84.40 against the US dollar, further increasing the cost of imports, which are considered unviable by mills.
“End-users are showing little interest in committing large-volume bookings and the rebar market is very subdued, and hence mills are unwilling to increase raw material inventories. For their limited requirements, raw materials are being sourced locally to avoid currency risks,” a Mumbai-based ferrous and non-ferrous scrap trader said.
“Steel inventories are also rising and this will force mills to further defer raw material restocking. Global cues indicate a further hardening of the scrap market. But in the local market trade will remain subdued,” he added.