Indian Scrap Market Exhibited Thin Trade Again Last Week

2015-01-17

The Indian scrap market exhibited thin trade again last week; however, the transactions that were made came at a higher level raising containerized shredded prices for Indian imports by $5 a ton.

According to The Steel Index, India containerized scrap import prices advanced by $5 a ton week-on-week to $329 a ton CFR Nharva Sheva port 9th January.

Despite the price rises this week, it would seem hasty to represent an emerging trend, particularly while a number of market participants remain pessimistic for the current quarter.

With the Rupee continuing its weakness against the Dollar, imports are expensive and banks have begun to tighten up lending to mills leading to a reduction in liquidity.

Views from March onwards, however, hold a little more promise with a number of participants predicting a rebound to coincide with the end of the fiscal year.

This, however, will depend heavily on the development of domestic steel demand which is currently shrouded uncertainly.