Prices
for shredded ferrous scrap imports into India were unchanged this week, as weak
demand and the unfavorable rupee-dollar exchange rate for buyers hampered
sales. Shredded material is now on offer at around $480-485 per tonne CFR Nhava
Sheva, unchanged from last week. Merchants and traders are now offering HMS
1&2 (80:20) at $460-470 per tonne.
However,
Price assessment for US ferrous shredded scrap delivered to Midwest mills
slipped by $2.50/MT Tuesday to a new midpoint of $452.50/MT as some US scrap
dealers tallied their first sales of the month.
The
scrap dealer went on to say that so far these were the only numbers out in the
marketplace. “This month the market appears to be very slow in developing
as there is regional pricing,” he explained. “So far we are not
offering, just positioning. I think our sales will begin to happen late Tuesday
or Wednesday.”
While shredded and heavy melting scrap No. 1 appear to be seeing some pricing
softness, cut plate and structural scrap, often the byproduct of demolition
activities, is in shorter supply and could see upward pricing pressure. This
would jolt out of alignment the typical price spreads among the grades of
scrap, with HMS usually the least expensive, followed by plate/structural,
leaving shredded the most expensive of the three.
“P&S
is in very short supply and we could see an increase there, putting it equal to
or above shred,” said the Southeast scrap dealer.
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