London — Lower prices of steel scrap in Turkey have pressured Indian import prices of ferrous scrap.
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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.
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--Edited by Jonathan Dart, email@example.com