Indian scrap offers inch up with limited enquiries

Indian scrap import prices have firmed slightly this week despite very limited buying interest.

UK-origin shredded scrap offers are reported at $530-540/tonne cfr Nhava Sheva, while US shredded quotes are at $525-530/t cfr, a market source says. Owing to high domestic demand in the EU, European shredded scrap offers are hovering at a high $570-580/t cfr, Kallanish hears.

“The Indian scrap market is witnessing fake rumours from market manipulators, resulting in a sudden rise and drop in offers,” a market source informs. “Although the market is improving, asking prices from buyers are $10-20/t lower than offer prices. No major deals were reported for shredded scrap, but minor [unspecified origin] trades were heard at $540-550/t this week.”

United Arab Emirates- and South Africa-origin HMS 1 scrap is offered at $470-490/t cfr Nhava Sheva, and UAE-origin HMS 1&2 80:20 is quoted at $450-460/t cfr.

Owing to the unavailability of ships for beaching in Alang port, the Indian shipbreaking market is observing positive sentiment. Kallanish assesses steel plate recovered from containers at $565-580/light displacement tonne (ldt), tankers at $530/ldt and bulkers at $520/t.

“The continuing lack of tonnage for recycling is contributing to rising ship plate and scrap prices, in Pakistan and Bangladesh in particular, where reliance on ship imports in the supply chain is significantly greater than in India,” informs a ship breaking source. “Recent dry cargo and container freight rate rises have sent both bulk and containerised scrap prices soaring.”

Sayed Aameer India