London 25 January 2011 09:43
Indian ferrous scrap bookings have been going through at lower levels since January 17 as UK-based recyclers started to accept lower offers between £270 ($431) and £275 ex-yard for small bookings of shredded material, according to market participants.
On January 20, a UK-recycler agreed containerised cargo at £277 per tonne ex-yard for prompt delivery, which equates to $490 per tonne cfr Nhava Sheva, for 3,000 tonnes of shredded material.
Since then, UK recyclers have accepted offers of £270-275 per tonne ex-yard for shredded grade before US and EU recyclers re-enter the market, according to market participants.
HMS-buyers in India have been sourcing from non-traditional markets such as Africa and the Middle East.
One ex-Sudan cargo was booked at $460 per tonne cfr Mumbai for 221 tonnes of HMS 1&2 (80:20) mix.
“Indian steelmakers will buy [shredded] at $480 [per tonne cfr] and it is quite easy to sell, but only small tonnages,” a trader told MB.
Last week, merchants expected prices to strengthen due to pressure exerted on scrap prices by higher coking coal costs; any downturn beyond $5 will not be contemplated by recyclers.
“Customers in India want shredded in a range of $470-480 [per tonne cfr], which is not viable at this moment,” a second merchant said.
Indian mills only have stocks from cargoes booked in November and December; demand is expected to pick up following two quiet months on the container market, market participants said.
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