NEW YORK U.S. exports of
containerized ferrous scrap to India have failed to gain
momentum despite an encouraging currency level as demand from
Indian steel mills remains uncertain.
Market participants offered
mixed reviews, with some reporting steady demand but others
seeing little or no interest from Indian buyers.
Prices for containerized
shredded scrap delivered to Nhava Sheva are in a range of $410
to $415 per tonne, ex-United States or ex-United Kingdom,
sources said, down $10 from a month ago (
amm.com, March 15).
A large U.S. exporter said that
with the rupee trading at close to 54 to $1, he expected Indian
buyers would rush for scrap. "But there is no buyer in the
market. People should grab at the $410 level. There is problem
with electricity in north India. The state of Punjab increased
electricity costs by 50 percent, so a lot of mini-mills are
shutting down. The south continues to suffer from long
electricity cuts daily. This has lowered demand," he said.
A smaller British exporter also
reported weak demand. "The price range for shredded is $410 to
$415 on thin trade. Customers are a bit worried about falling
gold, silver and copper prices," he said. "Demand is definitely
thin, especially at the right price (for sellers)."
However, other exporters said
demand has not ground to a halt.
"The demand is OK. I
wouldnt call it thin because there are mills buying.
Shred is between $410 and $414, and it is moving at those
numbers. We sold today at $413," said a source at a second
U.S.-based exporter that has several offshore locations. "There
are buyers in the marketjust the quantity has been
The exporter said that a
majority of the shredded sales to India are originating from
Britain, with only some shred being sold from the United
"The depressed market has led to
(some U.S. exporters selling shred to India) and also the fear
of what next month may bring. The majority of that, and with
some consistency, tends to come from Florida. In the U.S., that
is where the box market starts for shred, then it works its way
up the coast. The reason for that is that there is one mill in
the entire state of Florida. That does not leave these guys
with a lot of options; thus, they have to export," he said.
Some European exporters
"I can confirm the prices in
India are around $411 to $415 for shredded. Demand is steady in
some areas, but in the south it is weak," said a source at a
large European exporter, who added that prices are under
pressure. "There is a big pressure in Europe due to the long
absence of Turkey; plus, the local (European) mills are buying
very slowly. There is an absolute silence here. Secondly, the
euro/(dollar) exchange rate is making people more nervous. The
feeling is that (the) Turks will put further pressure on
numbers due to a high euro. Therefore, everybody wants to
offload some stocks."
"Inventories in yards are normal
and inflow of scrap is good in a major part of Europe," he
A buyer in India also reported
"good" demand and said that the rupee could encourage more
buyers to step into the market. "Nobody cares anymore what is
going on in Turkey. It is all about the Indian market," he
said. "There is also a bulk vessel booked in Chennai at $415.
But there is no scrap at all in India at the moment."
A supplier to U.S. exporters
called export activity "very spotty," while an Indian trader
said some Indian buyers are looking for bulk deep-sea cargoes
but at prices below $400 c.f.r. "Thats never going to
work for now. Shredded in containers is around $410 to $415
c.f.r Nhava Sheva, with most international markets showing poor
demand for scrap," he said.