NEW YORK Indian
steel mills continue to resist high offer prices for
containerized scrap, and the resulting impasse has affected
More mills have found
common ground on prices for heavy melt scrap, but a wide gap on
bids and offers resulted in very few sales of shredded scrap
this past week, market participants said.
Bids and offers for an
80/20 mix of No. 1 and No. 2 heavy melt ranged from $340 to
$350 per tonne c.f.r. Nhava Sheva, with several trades reported
in a range of $345 to $348 per tonne and a few falling on
either side of that range.
Limited volumes were
transacted at the higher side of that price range as mills
fought to secure larger volumes at or below $345 per tonne,
Mills are now bidding
at $340 per tonne for HMS 1&2 (80:20), which several
exporters said was unlikely to materialize.
"Sellers will not sell
at $340. The numbers do not make sense compared with what the
docks are paying. ... A lot of people do not want to sell, as
the consensus seems to be that the market will rise," one U.S.
said shredded scrap trading has come to a virtual standstill as
offer prices continue to trend at around $380 per tonne, with
mills bidding at $365 to $370 per tonne.
Extremely small volume
trades were reported at $375 per tonne out of the United States
and $380 per tonne from Europe, but for the most part sellers
said they couldnt get buyers to agree on prices.
"(The) Indian market
is really unpredictable at this moment, but a price increase to
$375 to $380 for shredded is looking like an ambitious target.
The best offer I have from an Indian buyer is around $370. The
shipment volume to India is at an all-time low, and until
volumes increase (offer) price increases will not sustain," one
U.K. exporter said.
Even $380 per tonne
for shredded scrap might not be desirable for some suppliers
due to a strong U.S. market, one U.S. supplier said.
"With the anticipation
that the domestic market will be at worst sideways to up,
interest in exports to India has faded. (Bids) are still in the
$330 f.o.b. Savannah range. They would need to be in the $375
range to get any interest," one U.S. supplier said.
availability is very low at U.S. yards, with most supply moving
domestically, one trader said.