NEW YORK A stronger U.S.
scrap market and higher freight costs off the East Coast have
combined with dismal demand from India to continue a stalemate
in containerized ferrous scrap exports to one of this
countrys top export destinations.
A slight reprieve in exchange
rates failed to trigger any significant buying by Indian mills
or brokers this past week as market conditions in India remain
bleak, several sources said.
"India seems to be out of the
international import market for many reasons," one scrap
A weak rupee against the dollar,
large tonnages of scrap available from local ship demolition, a
lack of electricity and a higher-percentage use of local sponge
iron were among the reasons for Indian mills exit, the
"Today, you cannot sell
(shredded scrap) higher than $420 to $425 c.f.r. Nhava Sheva,
and it makes no sense to (export) from Europe as well," he
Market participants said U.S.
offers for shred exports are around $430 per tonne c.f.r. Nhava
Sheva, with at least one source saying even that level is not
viable for sellers.
"Indian traders arent very
active in the container market right now. Suppliers
havent received any firm bids throughout the week. Demand
overall is very weak," a second source said. "No one wants to
make any moves first. Offers are at $430, but nothing (has
been) done at those levels. I heard some deals done at $420,
but that was for older purchases."
A buyer for a mill in India
confirmed some U.S. offers were at $427 to $430 per tonne, with
European-origin shred priced at $425 per tonne. The buyer said
he had concluded purchases of only 1,000 tonnes of shred out of
Europe at $425 per tonne.
Of the few exporters who
reported concluding some trades with India this past week, one
said the market for cut grades was reasonably decent.
"We just did deals into Chennai
at $425 and (deals at) $421 into Nhava Sheva, but that was from
the U.K. Numbers to Nhava Sheva were at $420 to $422, and I
have not heard anything above that," he said. "There were not
that many (deals) done for the last two weeks. We have actually
had more business into Bangladesh over the last two weeks."
Heavy melt was trading in a
range of $395 to $400 per tonne c.f.r. Nhava Sheva and between
$403 and $405 per tonne to Chennai, he said. "In general, shred
has not been moving too much over the last two weeks. Heavy
melt has been trading pretty well, particularly to the south.
If you have plate and structural scrap or good No. 1 heavy
melt, you can move it to any port, no problem."