Indian ferrous scrap prices track Turkish market lower

Lower prices of steel scrap in Turkey have pressured Indian import prices of ferrous scrap.

Imports of shredded material were heard priced between $340-345/mt CFR Friday, down from $15 on the week. 

Since the beginning of August, prices of Turkish ferrous scrap have dropped $30/mt due to a slump in the lira and a doubling of US tariffs on Turkish steel.

This sharp fall in Turkish scrap prices has also encouraged Indian importers to seek lower prices, an India-based merchant.

In addition, the continuing monsoon season as well as a fall in the rupee has contributed to pressure on Indian scrap import prices.

The rupee has fallen 8.3% against the dollar since the beginning of the year, and approximately 1.3% within the last month, making dollar-denominated scrap purchases more expensive for Indian buyers and leading to "liquidity issues" for some of them, according to a UK-based merchant.

One cargo for steel turnings arriving was traded around $300/mt, according to a source.

However, market participants were more divided on market direction.

While a trader said he expected demand to return at the end of monsoon in September and bolster prices, the India-based merchant was skeptical about prices rising as a further drop in Turkish prices could also "create big problems" for Indian prices.