Amid highly competitive ex-US ferrous scrap offers, Indian customers have resumed bulk bookings this week. Prices for containerized scrap have also slipped further but demand has remained limited as buyers are waiting for more reductions, SteelOrbis learned from trade and industry circles on Friday, July 22.
An aggregate of around 32,000 mt of bulk scrap from the US has been sent to clients in India for shipment in September to Chennai port in the south and Kandla port in the west.
According to sources, the deal consisted of 14,000 mt of shredded scrap, 10,000 mt of bonus grade and 8,000 mt of HMS I/II, with the average price at $430/mt CFR Chennai port and $425/mt CFR Kandla port.
“Weak demand and buying are prompting the US sellers to divert a lot of volumes to Asian regions. Indian secondary mills are seizing the opportunities. There are a lot of price arbitrage opportunities for local trade channels. The latest ex-US deals are at considerable discounts to sourcing for other regions,” a Mumbai-based trader said.
At the same time, ex-Europe shredded scrap in containers has been offered at $460-470/mt CFR to India by the end of the week, down by a further $10/mt from the levels seen earlier this week and down $20/mt from last week. Ex-Dubai HMS I scrap offers were reported at $470-475/mt CFR.