Ferrous
scrap market witnessed a sharp correction this month due to the weak buying
interests from the import countries including India. Some of the reasons for
such corrections are as follows:
–
Weakening rupee against dollar
–
Festivities during the month
–
Weak buying interest due to the higher prices
“Market
for Imported Scrap might come to a standstill as buyers are hesitating to enter
the market at such high prices. Dollar continues to appreciate against Rupee
and this is making Importers hesitant as they will have to pay more for the
imported cargoesâ€Â, said a broker based in Mumbai.
In
Chennai, some cargoes were heard being quoted at US$ 445-450/MT CFR Chennai.
However buying activities remained weak.
Whereas,
Offers for imported scrap at Mumbai were seen at US$ 435-450/MT CFR Nhava Sheva
and a seller with a container of around 3,000 MT of mixed material of HMS
scraps (80:20) was seen waiting for the buyers. But no booking were being heard
at the moment.
European
scrap market is also struggling due to the weak demand for the product in both domestic
international markets. Prices for UK ferrous scrap to be delivered during
November fell by US$25-40/MT for most grades due to a tailing-off in domestic steel
mill consumption.
Whereas,
growing production of hot-rolled flat steel products in Turkey is expected to
gear up the country’s scrap-buying patterns toward higher-quality prime scrap.
According to manufacturer based in Turkey, “Turkey,
the largest consumer of U.S.- and global-generated scrap, has started to shift
its focus to value-added steel products and expects a rapid increase in slab
production that will continue through 2015.”
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