Indian shredded scrap import prices moved over the week to Sept. 10, as firmer buying in the neighboring Pakistan market supported higher workable levels, sources said.
S&P Global Platts assessed Indian imports of shredded scrap at $524/mt CFR Nhava Sheva Sept. 10, up $5/mt on week.
A UK-origin sale totaling 1,000 mt was booked Sept. 8 at $525/mt CFR Nhava Sheva, while a Baltic recycler also said $525/mt CFR Nhava Sheva was workable.
One trading source said $520-$525/mt CFR was workable, while a second trader said $523-$525/mt CFR was workable, adding that “buyers would rather look for HMS, mostly from Dubai as the lead time is very short.”
Market sources cited HMS1 from the Middle East as ranging between $470-$490/mt CFR Nhava Sheva.
Another trader cited offers ranging from $525-$535/mt CFR, but with limited interest from secondary steel producers. The trader expected demand to pick up in the near-term once the monsoon season subsides.
“It’s hard to get material in the UK now,” the fifth trader said. “Containers are available, but you need to book in advance - one line is asking to book now for the last week of September, and for another shipping line, which is a couple of dollars cheaper, you have to book now for October 14 shipment!”
Container freight rates from the UK to Nhava Sheva, including inland UK haulage, were heard at $2,250-$2,275/TEU for October loading, roughly a $50/TEU increase on month. The freight cost is currently equivalent to around $83-$84/mt.
The neighboring Pakistan market, where prices are generally higher than into Nhava Sheva, saw high deal activity up to $535/mt CFR Port Qasim earlier in the week, but buyers were heard to be reluctant to pay more than $530/mt CFR Port Qasim on Sept. 10.
“Pakistan mills don’t want to pay over $530/mt CFR Port Qasim for shred – they’re saying why should they pay $90/mt over the Turkey index,” a UK trader said.
The CFR Nhava Sheva shredded scrap index was assessed $81.35/mt over the weekly average of the benchmark Platts CFR Turkey premium HMS 1/2 (80:20) index on Sept. 10 - its highest ever premium since the CFR Nhava Sheva index began in late 2014.
-- Steel Business Briefing
