In early February, as prices were increasing along with global market optimism, dealers from India began to increase inquiries for shredded scrap from US sources. On February 10, SteelOrbis reported offers of containerized shredded at $270-280/mt CFR Nhava while India-based traders were increasing their bids to $260-270/mt CFR Nhava.
According to sources, the feasibility for deals to India seemed real at the time, but it is now unknown whether Indian traders will purchase US scrap as prices have increased further and are being considered as “too high” for the Indian market. US origin shredded scrap is now being heard offered at $285-295/mt CFR Nhava. This price reflects an increase of $15/mt compared to offers heard on February 10.
As US domestic scrap prices are expected to increase in the early March buy-cycle, export prices are expected to remain steady at the minimum and possibly increase depending on the domestic mill demand for scrap to be brought inland from exporter docks.