A significant drop in customer bids made for scrap has been observed in India lately. The general sentiment among buyers is down, and therefore there does not seem to be any urgent moves towards the conclusion of bookings. Currently, the acceptable price level for shredded scrap is indicated at around $360/mt CFR. This is a fall-off of about $15/mt since the last heard bookings in this market.
As regards international scrap supplies, we do not hear much of availability from the US or Australia till June. On the other hand, pig iron and DRI prices remain strong. In view of this fact, demand for local scrap in India may remain firm. Power cuts expected in the country during the summer may lead to a shutdown or slowdown of the mini mills, which might eventually have a reducing effect on the supply side of the supply/demand balance, as SteelOrbis hears.