Imported Scrap Offers to India Remain Flat

Indian importers resist imported scrap on subdued steel demand along with depreciating Rupee.

Week 24 has begun with no major change in offers for scrap. Demand, too, continued to remain dull with no much active bookings.

Currently offers from Middle East for HMS 1&2 (23 tonnes loading) are at USD 260-265/MT. HMS 1 (25 tonnes loading) remained at USD 275-280/MT and Blue Steel/fabrication steel at USD 300/MT, CFR India.

Similarly Europe offered HMS 80:20 at USD 265-270/MT and shredded at USD 290-295/MT, CFR India.

Power issues in states producing steel through induction furnaces has led to downfall in ingot/billet production. This has resulted in fall in sponge and scrap consumption and increase in selling pressure in Indian market.

Rupee falls 64 and above against Dollar

Strengthening American Dollar in the global market on its increasing demand, made Indian Rupee drop by 22 paise in last two trading days. INR is currently at 64.06 levels against USD, adding to reluctance in the buying behavior of Indian importers.

On the other hand, as the counter effect of Dollar growing stronger in global market, Euro softened by 1% against USD. This (positive sign for Indian buyers) can provide a room for European suppliers to further trim their offer and get equal realization as before.

Scrap prices as on 15 Jun’15

Source: SteelMint Research