Scrap availability is going to be challenging for India as 60+ countries have banned or are banning scrap exports
For a second consecutive week (ended 29 Sept), Indian plate prices were reduced by US$10/MT which is in addition to a reduction of US$12/MT in the previous week. Import scrap prices were reduced by USD6/MT this week, according to a weekly report by Wirana Shipping.
Despite the drop, prices offered by ship recyclers for fresh tonnages were at the same levels. “But we saw another vessel sold this week, a bulker – Tycoon (last week it as a container – Fortune Trader) on a seemingly speculative price, much above the levels that ship recyclers could afford,” said the report.
The local market for long products showed signs of weakness for a second consecutive week also affecting the appetite of secondary mills to buy large quantities.
In what could be considered an interesting news in a softening local steel market for last two weeks, the Indian secretary of the ministry of steel has said that availability of scrap in India is going to be challenging as more than 60 countries have either banned or are in the process of banning scrap exports (to meet their reduction in carbon emissions target), the report noted.
Pricier oil is affecting local currency which has now been above 83-mark against the US Dollar for almost two weeks due to widened trade deficit.
“Although, expected inflow of funds for Indian government bonds should help reduce the pressure on Indian Rupee. We would expect prices offered by ship recyclers to marginally strengthen despite an apparent softness in a fundamentally strong local steel market,” said the report. Fiinews.com
