NEW YORK U.S. ferrous
scrap export tags to India were pressured again this week after
currency markets forced buyers to retreat for the second time
in a month.
U.S. exporters and market
participants in India reported offer prices in a range of $410
to $420 per tonne for containerized shredded scrap delivered to
Mumbais Nhava Sheva port. Offers for containers of an
80/20 mix of No. 1 and No. 2 heavy melt scrap were reported
about $15 below that level.
Sources said very little volume
had actually sold in that range, with many reporting no
transactions this week.
Exporters last week logged sales
at $415 to $418 per tonne c.f.r. Nhava Sheva as Indian buyers
had returned to the U.S. market after a nearly two-week hiatus
amm.com, Dec. 7).
"Trading into India hasnt
been so good. The India market has been really stagnant, with
little demand. Buyers are asking for $400 to $405 per tonne to
main ports," one U.S. exporter said.
"Frankly, all is not well with
the Indian steel industry. The finished steel markets have
constantly been going down over the past two months," a source
based in India said. "Now the effect has spilled to the raw
materials (market), which was (temporarily) in crisis due to
the mining mess and other (government) controls."
Another source in India said a
stronger dollar doused any buying interest this past week.
"The market is very quiet in
India. Offers are around $415 to $420 (per tonne), but there
are no buyers as the rupee is above 54 against the dollar," he
said. "It is not making business viable, and the finished good
sales are not picking up at all, which is a big concern for
East Coast exporters of
containerized scrap who rely heavily on Indian demand
speculated that market activity could remain thin for a few
One called this weeks
export market to India "dead," while another said "export is
U.S. sources reported East Coast
f.a.s. values for shredded scrap in a wide bid range of $340 to
$357 per tonne.
Only one market participant was
upbeat. "I have not heard of any major sales from the USA to
India. However, Indian sentiments have just started to pick up
a bit, and I assume most buyers will be back in the market by
the end of December or the beginning of January," the
India-based importer said.