Shredded scrap import prices to Nhava Sheva dropped late last week as Indian mills booked at $460-470 per tonne cfr for the northern port. The move came as the euro weakened against the dollar, allowing EU recyclers to accept bids for shredded scrap at lower levels than other exporters.
Shredded scrap imports dropped up to $25 from the last bookings made in the first week of February at $485 per tonne cfr Nhava Sheva.
Shredded scrap imports dropped up to $25 from the last bookings made in the first week of February at $485 per tonne cfr Nhava Sheva.
EU scrap processors were willing to sell at levels amounting to $460 per tonne cfr Nhava Sheva.
US recyclers, after initially selling shredded material to traders, left the Indian export market earlier this week, following increased demand from Southeast Asian buyers. Shredded scrap booked by traders last week is available in containers at $460-465 per tonne cfr from the US this week.
UK recyclers were reluctant to accept bids of £250-260 ($401-417) ex-yard from Indian traders last week as a trading house bid for material at £263 ($422) per tonne ex-yard, according to market participants.
However, large quantities of EU-origin shredded is being tendered at $460 per tonne cfr, as the softening Chennai market is spurring traders to sell in the northern port of Nhava Sheva.
Traders are uncertain as to whether the market will weaken further or strengthen.
“There is resistance from UK and EU suppliers to sell at lower levels. They are holding firm at $470 per tonne cfr. I doubt prices will touch $450 any time soon,” a merchant told MB.
Yet UK recyclers received bids late on Tuesday at £255 per tonne ex-works for shredded scrap, amounting to $455 per tonne cfr Nhava Sheva.
Despite German mills purchasing strongly this week, merchants believe EU recyclers will have to lower their expectations for the container market.
“Europeans are being optimistic, thinking they’ll get $460 per tonne cfr, based on Turkish sales and buying confidence,” a second scrap merchant said.
Liquidity problems at many long product mills in India, and domestic scrap being available there at $455-460 per tonne delivered, are weakening the market, according to participants.
US recyclers, after initially selling shredded material to traders, left the Indian export market earlier this week, following increased demand from Southeast Asian buyers. Shredded scrap booked by traders last week is available in containers at $460-465 per tonne cfr from the US this week.
UK recyclers were reluctant to accept bids of £250-260 ($401-417) ex-yard from Indian traders last week as a trading house bid for material at £263 ($422) per tonne ex-yard, according to market participants.
However, large quantities of EU-origin shredded is being tendered at $460 per tonne cfr, as the softening Chennai market is spurring traders to sell in the northern port of Nhava Sheva.
Traders are uncertain as to whether the market will weaken further or strengthen.
“There is resistance from UK and EU suppliers to sell at lower levels. They are holding firm at $470 per tonne cfr. I doubt prices will touch $450 any time soon,” a merchant told MB.
Yet UK recyclers received bids late on Tuesday at £255 per tonne ex-works for shredded scrap, amounting to $455 per tonne cfr Nhava Sheva.
Despite German mills purchasing strongly this week, merchants believe EU recyclers will have to lower their expectations for the container market.
“Europeans are being optimistic, thinking they’ll get $460 per tonne cfr, based on Turkish sales and buying confidence,” a second scrap merchant said.
Liquidity problems at many long product mills in India, and domestic scrap being available there at $455-460 per tonne delivered, are weakening the market, according to participants.
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