On June 2, SteelOrbis reported ex-US containerized HMS I/II 80:20 scrap to India on offer at $270-275/mt CFR and containerized shredded scrap at $290-300/mt CFR Nhava Sheva.
Sources inform SteelOrbis that scrap offers continue at the same levels this week due to limited demand from the region. While low volume purchases of shredded containers from short-sea destinations were heard in India at $290-294/mt CFR Nhava Sheva for the week ended June 9, offers for US shredded containers at $290-300/mt CFR Nhava Sheva were met with limited bids at approximately $280-285/mt CFR Nhava Sheva. Given the higher US domestic scrap prices, US shredded exporters preferred to remain in the domestic market instead of pursuing Indian buyers.
Currently, bids and limited volume transactions for HMS I/II 80:20 are being heard at $270-272/mt CFR Nhava Sheva level.
Lackluster scrap demand in India is attributed to domestic market uncertainty, along with uncertainty from the upcoming implementation of the Goods and Services Tax that is expected to come into effect July 1.
Offers for Chinese origin scrap in the region are also putting pressure on the Indian scrap market. Small volumes of shredded scrap have been heard purchased from China at $275/mt CFR Chennai and $280/mt CFR Nhava Sheva. As the trial containers are being identified as acceptable for use, this could further affect the ability for US exporters to finalize transactions for shredded scrap.