On June 30, SteelOrbis reported ex-US East coast scrap deals to India at $300-305/mt CFR Nhava Sheva for containerized shredded scrap.
According to sources close to SteelOrbis, while activity to India is temporarily subdued due to the new GST (Goods and Services Tax) implementation that began on July 1, the beginning of monsoon season, and competitive domestic scrap and DRI alternatives, several small volumes of containerized shredded scrap have been booked from the US at $310/mt CFR Nhava. Compared to late June, these prices reflect an increase of $5-10/mt on ex-US scrap; however, the price is still lower than the $315/mt CFR Nhava level that was achieved from short-sea transactions in late June.
Sources believe that scrap purchases for fourth quarter deliveries to India will increase as the net effects of the GST are better understood, as well as private and public investment initiatives for national growth of the steel industry are further implemented.