NEW YORK U.S. export
prices for bulk and containerized scrap to India are under
pressure after British sales into Chennai pushed tags
A bulk vessel hauling shredded
steel scrap to Chennai from the United Kingdom sold at $430 per
tonne c.f.r. Chennai, setting the tone for weaker containerized
scrap tags, which fell significantly Friday.
A large international exporter
on Friday sold 10,000 tonnes of containerized shredded scrap at
$413 per tonne c.f.r. from its British location, effectively
lowering the market by more than $10 per tonne from
Thursdays price levels, one market participant said.
"My week was going well until
the news ... this morning," he said. "(An exporter) sold 10,000
tonnes shred in containers to Chennai at $413 c.f.r. The market
was at $420 to $425 yesterday. Now consumers in India are
looking to buy at $405 c.f.r."
A second source in India
confirmed the development, but added that price offers were
even lower. "Some Indian sellers are looking for $400 c.f.r.
Nhava Sheva for shred," he said.
A week earlier, shred to Nhava
Sheva was trading at $425 to $435 per tonne.
The $20 to $25 drop in prices is
also partly due to unsold material sitting at the Mumbai dock,
sources said. Several sources reported the arrival of between
8,000 and 9,000 tonnes of unsold shred at Nhava Sheva.
"(It is) being offered at low
rates, but (there are) very limited takers," the second source
There was no buyer for the
material because people had backed out, according to a third
source from India. "Here in India, the market is very down;
sentiments are very weak," he said.
U.S. exporters said suppliers
are now resisting these lower offers in an attempt to arrest
the slide in prices.
"Im starting to see some
resistance from East Coast suppliers on pricing," the first
source said. "Most dealers are looking to hold as of now until
July and see what domestic does, as the pricing for export has
just been dropped so far that they feel if they wait it out
there will be a slight rebound in August."
However, a fourth U.S.-based
exporter questioned that strategy, saying the market will
weaken again in July.
There could be some respite for
exporters after a Gulf Coast exporter sold a mixed bulk cargo
to Turkey at a composite price of $388 per tonne c.f.r. for a
90/10 mix of No. 1 and No. 2 heavy melt scrap and shred.
The price equates to about $382
per tonne c.f.r. for 80/20 heavy melt, which is about $2 per
tonne higher than previous sales.
Market sources also dismissed
rumors that a different East Coast exporter had sold a second
bulk cargo to Turkey at this past weeks price level of
$380 per tonne c.f.r.
As of Friday afternoon, only the
one bulk cargo was sold to Turkey from the United States, and
it hadnt come from the East Coast, sources said.