India-bound ferrous scrap freight remains mixed amid muted import demand

• Freight stays mixed as weak scrap bookings limit upside
• Firm bunkers offer support despite ample vessel availability

India-bound ferrous scrap container freight rates remained mixed in the week ended 30 July, amid subdued import activity and divergent market conditions across key origins. Imported scrap sentiment stayed bearish as mills continued to favour domestic procurement, supported by improving local availability and firmer domestic prices. A wide bid-offer gap and firm overseas offers, amid tight global scrap availability, further limited fresh bookings.

On the Europe-to-India route, trading remained muted as elevated seller offers continued to deter buyers. Meanwhile, a UK-based shipbroker noted that container freight rates could rise in the coming month as major shipping lines introduce additional surcharges, increasing the overall landed cost of shipments.

On the Australia-India route, an Australia-based shipbroker said, “Australian scrap exports to India are currently minimal, with Indonesia emerging as the preferred destination due to stronger demand.”

Route-wise update

Market highlights

• CFI declines w-o-w amid easing peak-season momentum: The Shanghai Containerized Freight Index (SCFI) fell 17.36 points w-o-w to 3,062.95 on 24 July 2026, from 3,080.31, reflecting softening container freight sentiment as improved vessel availability and normalizing demand eased pressure on major trade lanes. Despite the decline, freight levels remained elevated, while market sentiment turned cautiously bearish amid gradually rebalancing supply-demand fundamentals.
• Bunker prices rise w-o-w: Bunker prices increased by $7/tonne (t) w-o-w to $826/t on 30 July, from $819/t a week earlier, reflecting firm marine fuel sentiment amid continued geopolitical risks affecting global energy markets. The rise in bunker costs is expected to increase voyage operating expenses for shipowners and provide support to freight rates, particularly where carriers continue to pass on higher fuel costs through surcharges.

Outlook

India-bound ferrous scrap vessel freight is likely to remain mixed to slightly subdued in the near term, as weak import appetite and ample vessel availability could limit upward movement.

However, firm bunker costs and route-specific vessel positioning could provide some support to freight rates, particularly on longer-haul trades. Any revival in Indian scrap bookings, alongside tighter prompt tonnage, could trigger selective increases, while subdued mill demand would keep overall upside capped.