UK shredded price premium said eroding

Apr 19, 2013 | 05:45 PM | Sean Davidson

Tags  scrap, steel scrap, shredded scrap, scrap exports, scrap premium, Sean Davidson

NEW YORK — The price premium that British shredded scrap has long enjoyed over U.S. material is eroding due to Indian steel mills’ sporadic demand for shred, some market participants said.

Shred from most parts of the United Kingdom has typically enjoyed a premium over U.S. shred, as more tonnes are loaded into each container, less light iron is shredded there and shipping times to India are shorter, some exporters and buyers said.

The typical premium has ranged between $5 and $10 per tonne over U.S. shredded scrap prices, the sources said.

British suppliers need to export volumes due to the small size of their domestic market, one exporter said. "One of their biggest markets for shred is India, and when India is not buying, they have to lower prices," he said. "So they’re agreeing to drop levels to prices of U.S. shred. And some U.S. exporters are taking sales at the current price levels because of the negative sentiment for May in the domestic market."....

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