India-bound ferrous scrap container freights ease on key routes amid subdued import demand

• Freight rates decline amid weak demand from India
• Festive slowdown and weak steel demand limit Indian scrap imports

India-bound ferrous scrap container freight rates declined w-o-w across key routes during the week. However, uneven container availability, port congestion and potential shipment delays continued to affect logistics, while subdued Indian scrap demand limited booking interest.

In India, imported scrap trading remained subdued amid festive closures, weak finished-steel demand and competitive domestic material prices. UK-origin offers remained above indicative bids, reflecting limited buying interest and a persistent bid-offer gap. Lower freight rates may provide some relief to importers’ landed costs, but the decline has yet to translate into stronger booking activity.

A trader stated, “Container availability remains uneven across key ferrous scrap-exporting regions, affecting shipment schedules and delivery timelines to India. Also, higher freight costs and equipment shortages on select routes may increase landed costs and weaken import booking interest among Indian mills.”

Container availability and schedule reliability remain uneven across shipping routes, with port congestion, vessel bunching and transshipment delays reducing the reliability of effective capacity. These constraints may continue to affect scrap shipment timelines to India despite the recent decline in freight rates.

Global scrap market sentiment

South Asian imported scrap markets remained mixed. Pakistan saw prices strengthen amid disruptions to UAE-origin supplies and tighter cargo availability, while Indian trading remained subdued due to festive closures and weak steel demand. Bangladesh offers stayed firm despite elevated finished-steel inventories, whereas Turkish prices remained stable as weak rebar sales and cautious mill procurement limited buying interest.

Global freight indicators

• SCFI edges up as carrier capacity management offsets post-Golden Week demand softness: The Shanghai Containerized Freight Index (SCFI) rose by 15.47 points w-o-w to $3,679.58 on 16 October from $3,664.11 on 9 October, marking a marginal increase of 0.42%. The uptick was supported by carrier capacity adjustments and blank sailings, which helped sustain freight rates despite softer booking demand following China’s Golden Week holiday.
• Singapore bunker prices rise on higher replacement costs and firm buying interest: Singapore bunker prices increased by $21/tonne (t) w-o-w to $931/t from $910/t last week, reflecting a 2.3% gain. The increase was supported by tighter availability of low-sulphur marine fuel in Singapore, as reduced arbitrage arrivals from Western markets constrained regional supply.

Outlook

Lower container freight rates could improve the competitiveness of imported scrap into India, particularly on UK-origin routes. However, uneven container availability, shipment delays and logistics costs may continue to affect delivery schedules and landed costs. A sustained recovery in import bookings will depend on improved finished-steel demand, narrower bid-offer gaps and greater price competitiveness against domestic scrap and DRI.