Negative finished steel demand in South Asian countries resulted in limited transactions in imported ferrous scrap. Opening of letters of credit (LC) is tough now. The currency devaluation has led to production cuts in these nations which, in turn, have put the imported scrap market under pressure.
A buyer stated: “Prices might come down further in the near term and the market would remain under pressure. So major buyers have opted for a wait-and-watch approach.”
Also, due to shortage of scrap in the domestic market in India, sellers were reluctant to sell at lower rates to buyers.
SteelMint’s price assessment
- Europe-origin shredded scrap offers into India were at $425/t CFR Nhava Sheva, a marginal fall of $2/t d-o-d.
- UK-origin shredded scrap prices were at $420-425/t CFR Qasim, down $2/t compared to yesterday’s closing.
- UK-origin shredded prices were unchanged at $460/t CFR Chittagong.
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