Containerized ferrous scrap exports to India effectively dried
up in the past week as buyers were unable to match rising price
offers from the United States and Europe.
Barring a momentary
spike in volumes earlier this month to at most a handful of
large producers in India, exports have remained dismal for a
few months, with no uptick in sight, sources said. Heavy melt
exports have fared only marginally better in recent weeks, many
Buyers and sellers
attributed weak market conditions for finished steel in India,
rising domestic prices in the United States and increases in
Turkish prices for imports from Europe as the reasons for
buyers inability to negotiate at current offer levels.
Offer prices reportedly were in a range of $340 to $345 per
tonne c.f.r. Nhava Sheva for an 80/20 mix of No. 1 and No. 2
heavy melt and $370 to $380 per tonne for shredded scrap.
With a weeklong annual
religious holiday approaching and no immediate signs of demand
recovery, several market players suggested these bleak
conditions will continue for the next few weeks.
"(There is) no
improvement here in India. Shred was purchased (recently) by
very few stainless steel or alloy steel producers. No billet
manufacturer has bought shred for the last six to nine months,
as heavy melt, turnings, bundles and several other products are
available at better prices, like $310 for turnings and $320 for
bundles," a trader in Mumbai, India, said.
U.S. exporters said a
rising domestic market buoyed by an anticipated seasonal uptick
and this past weeks jump in bulk prices to Turkey made
India the least-attractive market.
"(Turkey) created a
lot of buzz in the U.S. scrap market, which has resulted in
yard owners increasing their prices by at least $15 to $20 per
tonne for shredded scrap," one trader said.
Usual suppliers to
India said they have made no attempt to court Indian buyers due
to far more attractive domestic prices.
"There have been a few
inquiries for shred in containers from Savannah, but no firm
offers," one supplier said.
A second East Coast
supplier said he had made no efforts to sell heavy melt or
plate and structural scrap in containers to India recently. The
supplier said that despite no sales of shred to India, offer
prices have increased to $337 to $340 per tonne f.a.s.
Baltimore this past week from $322 at the beginning of the
Some sources reported
minimal volume exports to alternate markets such as Southeast
Asia, with sales of shred reported in a range of $380 to $385
per tonne c.f.r. Indonesia.