India-bound scrap container freight stays firm w-o-w on tight vessel availability

• Tight vessel availability supports rates on key routes
• Limited Indian bookings cap broader freight gains

India-bound ferrous scrap container freight rates increased across key routes w-o-w despite weak demand from Indian buyers. “The gains appear to be driven primarily by tight vessel availability, limited container supply and carrier-side capacity constraints, rather than a meaningful recovery in scrap bookings,” a shipbroker said. Freight sentiment therefore remained firm, although the increase was largely supply-driven rather than supported by stronger Indian demand.

India’s imported scrap market has shown some improvement as domestic scrap prices firmed and buying interest strengthened with the monsoon season nearing its end. However, buyers remained cautious towards higher offers, with mills largely focusing on immediate requirements. This has kept actual booking activity limited and prevented a stronger demand-led increase in freight rates.

Regional demand remained mixed, with Pakistan seeing comparatively stronger buying interest and providing some support to container flows. While freight rates have not yet recorded a broad-based increase, continued vessel and equipment constraints could keep market sentiment firm. However, limited Indian bookings remain a key factor restricting further gains.

Route-wise sentiment

Market highlights

• SCFI rises 2.9% w-o-w: The Shanghai Containerized Freight Index rose to 3,509.53 on 28 August from 3,409.63, supported mainly by firmer US-bound markets, while Europe-bound trades remained mixed amid changing capacity and service patterns.
• Bunker prices rise: Singapore VLSFO bunker prices increased by $76/tonne (t) w-o-w to $848/t from $772/t raising vessel operating costs and providing additional support to freight rates.

Outlook

India-bound scrap container freight rates are likely to remain firm but uneven through September. Tight vessel and equipment availability, together with higher operating costs, should continue to support rates, particularly on constrained routes. However, subdued Indian bookings and cautious mill procurement are likely to limit the extent of further increases unless scrap demand strengthens.