India-bound ferrous scrap cargoes exhibit mixed trend w-o-w

• Import activities slowed down amid bid-offer disparities
• Persistent weakness in buyer demand continues to suppress trading sentiment

India-bound ferrous scrap container freights exhibited mixed trends in the week ended 11 June across regions. As per market participants, the scrap import in India remained slow, as buyer are resilient for maintaining low prices.

Market participants noted that suppliers continue to prioritise exports to Southeast Asia and Bangladesh, where stronger buying interest and higher achievable prices offer better returns than India. As a result, Australian scrap shipments remain largely concentrated in these markets.

A UK-based shipbroker stated, “UK scrap export activity remains subdued, with limited cargoes moving to Pakistan and little interest from India’s key import hubs. Weak Indian demand, coupled with stronger domestic UK prices and firmer buying from Pakistan, continues to restrict trade flows to India.”

“Market sentiment remains bearish, reflecting subdued global scrap demand and cautious buying activity across key importing regions. Price sensitive buyers and ample scrap availability continue to weigh on export market fundamentals”, an Australian based shipbroker informed.

Although freight rates increased on the route, the rise was primarily driven by higher fuel prices, which elevated operating costs, BigMint understands.

Route-wise update

Market highlights

• CFI increase amid peak season demand: The Containerized Freight Index (CFI) rose 354 points w-o-w to 2,726.5 points on 5 June. The increase was supported by an early start to the peak shipping season, front-loading of cargo bookings, successful General Rate Increases (GRIs) by carriers, and higher bunker-related surcharges stemming from Middle East geopolitical tensions.
• Bunker prices dropped w-o-w: Bunker prices decreased by $44/tonnes (t) w-o-w to $816/t on 11 June, reflecting a bearish bunker market sentiment amid softer crude oil prices, improved fuel availability, and easing concerns over near-term supply tightness at major bunkering hubs.

Outlook

Market sentiment is expected to remain cautious in the near term, as slow scrap demand in India continues to limit import buying activity. Additionally, volatility in bunker prices is creating uncertainty over freight costs, prompting buyers to adopt a wait-and-watch approach and delaying large-volume purchases.