NEW YORK Indian steel
mills have significantly lowered their bids for ferrous scrap
over the past few days, market participants said, resulting in
a complete halt to U.S. exports of containerized scrap to the
Indian bids for containerized
shredded scrap from the U.S. East Coast dropped to a range of
$400 to $410 per tonne delivered to Mumbais Nhava Sheva
port by the end of last week, down from sales at $424 to $430
per tonne c.f.r. Nhava Sheva earlier in the week.
Several market participants had
told AMM that they were expecting export tags to India
to soften due to poor currency market conditions and struggling
finished product sales (
amm.com, Nov. 20).
However, most sources said the
$20 to $25 drop in bids has done little to deter U.S. exporters
from continuing to offer scrap at the levels seen early last
week, with only a few sources reporting some exporters lowering
"Starting from last week, prices
have weakened by $5 to $10 per tonne. Shredded from Europe was
offered at (the) $424 to $425 level, meaning $420 ex-U.S. It is
difficult to find buyers even at $420 today," one source
A second source, based in
Mumbai, said sellers offers have yet to drop below $420
per tonne for shredded. "Most offers are still between $425 and
$430, and some U.S. sellers (are) even offering levels of
$435," he said.
"With the India rupee trading at
up to 56 against the U.S. dollar, the sentiment is weak. It may
reverse in the next day or two," a third source said.
Exporters willing to drop offer
prices could still struggle to book shipments, according to a
fourth source. "At higher offer levels, there are no buyers in
India at the moment. Even at $410 it is difficult to generate
sales, as many factories are thinking of shutting down or
reducing their production as losses are tremendous," he
"Most buyers are looking for
$410 into Nhava Sheva, and I have yet to see that price
actually conclude business," a fifth source said.
Most participants said the
market prices wouldnt find firm footing on trades until
at least next week.
"This large disparity between
bids and offers is typical for the last trading week of any
month. I expect things to become clearer next week," a sixth