Indian buyers have concluded large-volume deals for ex-US containerized shredded scrap estimated at a total of around 80,000 mt this week, attracted by deep discounts, SteelOrbis learned from trade and industry circles on Friday, June 24.
Trade circles said that a deal for 40,000 mt of shredded scrap was booked from the US at $400/mt CFR Chennai port in the south, just lately, according to sources.
Earlier in the week, a supply contract was concluded for a similar 40,000 mt tonnage originating from the US East Coast at a slightly higher price of $415/mt CFR Kandla port in the west. The cargo consists of 36,000 mt of shredded and 4,000 mt of bonus grade scrap, the sources said.
Large volumes of ex-US scrap sold to India, which is not a traditional destination for bulk sales, indicated strong oversupply in originating countries.
However, the sources said that, though no confirmation was available in the market regarding the identity of buyers, considering that the two deals involved tonnages much higher than average, speculation suggested that the bids were submitted on a consortium basis.
According to the sources, general imported shredded scrap prices in containers in India have come to $420-430/mt CFR Nhava Sheva, slightly below the levels of $425-435/mt CFR reported earlier this week. This is $65-70/mt below last week, confirming a rapid fall over the past week.