NEW YORK U.S.
containerized ferrous scrap export prices to India are under
pressure after Indian mills stepped away from the market
following a buying spree a week ago.
Only a handful of Indian mills
traded actively last week, and that number plummeted this week
as the Indian market continues to search for finished product
demand, sources said.
A few sales of containerized
shredded scrap were reported this week at $425 per tonne
delivered to Mumbais main Nhava Sheva port. Prices are
down as much as $10 per tonne from the previous week, with U.S.
offers ranging between $425 and $430 per tonne on Jan. 24,
according to several market participants. Deliveries to the
southeast Indian port of Chennai are trading at a $4- to
$5-per-tonne freight premium over levels into Nhava Sheva,
"The offers at a range of $425
to $430 c.f.r. Nhava Sheva/Chennai for container shred, these
are just offers. There has been a lot of talk in the last week,
but thats just it: talk. No solid numbers have been given
out yet, particularly from the India side," one exporter
"There is a sense that there
will be numbers out (by the end of the week) on the boxes,
particularly to the north as there have been inquiries from a
lot of the big mills," he added.
"The market was active last week
and is off this week," a second source said. "There is no
demand in India for finished goods. Scrap export prices will
probably drop $5 next week."
Other sources also speculated
that tags are under pressure.
The market is slow and "price
softening is expected for February shipments," one source in
"The markets are again under
pressure due to finished steel prices dropping $30 in
Indias domestic markets," another source in India
The limited buyers in the market
have indicated $420 per tonne as their next target level for
shredded scrap, two additional sources said.
However, a seventh source said
prices could decline further.
"Offers from the U.S. are at
$425 and from the U.K. at $420. Buyers today are not showing
interest at these prices and expect it to correct by another
$10 to $15. I guess in a few days pressure will build on
sellers to sell their cargo, and thats when prices might
correct," he said.
Buying activity is unlikely to
gain momentum for at least six weeks as market conditions in
India will only improve gradually, the second source said.
"The country has not bought a
lot of scrap in a while, so I expect them to be in the market
at a slower pace starting in March," he said.