Indian Scrap Importers resist on Weak Rupee

Scrap imports witness a resistance from Indian buyers owing to falling Rupee. Current offers are in the range of USD 315-320/MT CIF Nhava Sheva.  

Indian currency Rupee, which is currently trading at 13-month low level of 63.45 against USD, has made the buyers cautious about their imports. Though, offers are hovering in the range of USD 315-320/MT CIF Nhava Sheva, buying interest is mostly seen at USD 310-315/MT CIF.

While having a brief conversation with a Middle East based Scrap exporter, SteelMint assessed that the exporter is offering 250 MT HMS 1&2 at USD 317/MT Nhava Sheva, and till now fails to find any buying interest. Besides, buyers are quite prudent about taking any position during falling Rupee. Last trade of HMS 1&2 was settled at USD 317/MT CIF, he further added.

Domestic Highlights

In domestic market, Scrap prices rose marginally by INR 100-200/MT, but buyers are preferring to wait & watch till market gets a clear direction.

On the contrary, eastern region of India that majorly consumes Sponge & Pig iron, have observed some pressure on Pig iron offers. Some of the large manufacturers have corrected offers by INR 300-400/MT owing to lower export and stock piling pressure.

Imported Scrap Prices in Turkey firm up

After a long dull demand for Scrap in Turkey, prices have shown some positive signs. Here, Scrap prices remained firm at around USD 305-308/MT, CFR Turkey as a result of limited supply from Europe & US. Turkey is the largest importer of Scrap in the world.

As an outlook, falling Rupee may become a major concern for Scrap exporters resulting to minor correction in offers, to facilitate buying in India.