Indian shredded scrap import prices recovered over the week to Feb. 4, as Indian mill demand was muted but increases were supported by a sharply rising international market, sources said.

S&P Global Platts assessed Indian imports of shredded scrap at $542.50/mt CFR Nhava Sheva Feb. 4, up $7.50/mt on week.

One trading source cited an indicative tradable value for containerized shredded scrap at $545/mt CFR Nhava Sheva on Feb. 4, but noted muted demand, while a second trading source cited a workable level at $545-$550/mt CFR Nhava Sheva.

Two other trading sources said $535-$540/mt CFR was workable on Feb. 3. One of the two traders said, “only one or two stainless/alloy mills will book at these prices,” while the second trader said demand was negatively affected by a slower finished steel market.

A fifth trading source said around $540/mt CFR was workable.

Limited bookings over the week to Feb. 4 into Pakistan were heard at $548-$550/mt CFR Port Qasim, with traders citing a rejected bid at $554/mt CFR Port Qasim, and an indicative tradable value as high as $560/mt CFR on Feb. 4.

Container freight rates were expected to rise $100/TEU to $2,800/TEU for the UK-Port Qasim route for loadings between Feb. 10-24, while a further hike of $200/TEU was expected for March loadings.

“Most traders will be paying over $3,000/TEU [or $111/mt] for containers very soon,” a UK trader said.

The UK-Nhava Sheva route was also expected to increase by similar levels from its current freight rate of $2,450/TEU in the coming weeks.

UK yards were heard to have accepted GBP 335/mt EXW for shredded scrap parcels for containerized export on Feb. 2, but some traders said even bids at this level on Feb. 3 were rejected, as yards anticipated further prices hikes in both bulk and containerized export markets.

The CFR Nhava Sheva shredded scrap index was assessed $52.90/mt over the weekly average of the benchmark Platts CFR Turkey premium HMS 1/2 80:20 index on Feb. 4, down $12.40/mt on week.

Historically, the India shredded scrap price has averaged $17.99/mt over the Platts CFR Turkey premium HMS 1/2 80:20 index.


-- Viral Shah

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