Scrap prices climb rapidly in India amid tight supplies, higher freight, new bookings

Wednesday, 04 November 2020 16:34:39 (GMT+3)   |   Kolkata
       

Imported shredded scrap prices in India have continued on an uptrend during the past week, recording significant gains in prices, supported by the persistent tightness of ex-US supplies and the rise in bookings by local secondary steel mills, SteelOrbis has learned on Wednesday, November 4.

Market sources said that ex-US containerized shredded scrap prices have increased to a range of $324-330/mt CFR Nhava Sheva port in the west, with at least one deal reported to have even been concluded at higher levels for early January delivery. This compares to deals concluded in the range of $315-320/mt CFR in the earlier week. The sources said that imported scrap prices have increased in view of tight supplies.

Several traders and importers said that scrap prices are also reacting to a sharp increase in container freight rates which are rising sharply in view of the shortage of availability along US-India routes, against the backdrop of a bounce back in international shipping. They said that on average the freight rate per container was up by $500-600 for 40-foot containers along US-India lanes, which was also impacting the CFR price of imported scrap at Indian ports. It was also pointed out that Indian containerized merchant exports are still on a downslide and this means that containers arriving at Indian ports are having to return empty for carriers plying to the next destination port in the region and hence freight operators have been increasing container rates destined for Indian ports.

However, the higher landed price of imported scrap was not showing signs of deterring local secondary mills from increasing bookings, as they were anticipating both a further tightening of supplies through the winter months and higher prices.

The sources said that a western India-based secondary steel mill cum scrap trading firm has concluded a booking for ex-US shredded scrap at a price of around $333/mt CFR with the sources attributing the higher price to a premium paid for early delivery in January, indicating tight supplies from US-based sellers.

Another secondary steel mill located in the central region around Raipur has reported a deal for 30,000 mt for end of January-February delivery of ex-US shredded scrap at around $328-330/mt CFR, the sources said.

The price increase in shredded scrap was also reflected in imported bulk HMS I/II scrap offers, which have increased to $310-315/mt CFR, compared to $300-315/mt CFR in the earlier week.

A Maharashtra-based steel mill has concluded a deal for bulk HMS I/II at a price of around $315/mt Mumbai port for February delivery of a tonnage estimated at around 25,000 mt, market sources said.

Higher import prices have prompted smaller and medium-sized secondary steel mills to increase local sourcing, pushing up scrap prices in the local market. Prices are reported to be up by INR 1,000/mt to INR 27,400/mt ($368/mt) ex-stockyard at Mandi Govindgarh in the north. The scrap price increased by INR 800/mt ($11/mt) to INR 24,600/mt ($331/mt) ex-stockyard at Alang in the west.

$1 = INR 74.40


Similar articles

Mexican domestic scrap prices

28 Mar | Scrap & Raw Materials

Carbon and stainless scrap prices in Taiwanese domestic market - week 13, 2024

28 Mar | Scrap & Raw Materials

Turkey’s deep sea scrap prices stabilize at $385-390/mt CFR

28 Mar | Scrap & Raw Materials

CISA: Coking coal purchase cost in China down 9.86% in Jan-Feb

28 Mar | Steel News

US scrap market still expecting sideways pricing in April

27 Mar | Scrap & Raw Materials

Ex-US deep sea scrap prices to Turkey increase, ex-EU prices relatively stable

27 Mar | Scrap & Raw Materials

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Average local Chinese scrap prices rise amid tight supply after previous decreases

27 Mar | Scrap & Raw Materials

Import scrap prices in India move up, but low bids prevent deals

27 Mar | Scrap & Raw Materials

Baltic countries and Czech Republic seek EU ban on ex-Russia scrap imports

27 Mar | Steel News