Global
weak demand for Semi and finished products have hit ferrous scrap prices last week.
Prices fell by US$ 10-25/MT globally.
High
volatility in the global market and depreciating rupee against dollar has made
export countries to reduce their offers for ferrous scrap to import countries including India. However
demand remained weak last week and Indian buyers have shown some interests at the end
of the week.
Offers
to India last week were as follows (US$ CFR Nhava Sheva Mumbai):
HMS
I (90:10): 470-475/MT (Dubai Origin)
HMS
I&II (80:20): 435-460/MT
Shredded
scrap: 460-470/MT
Low
demand for semis and finished steel products continued to hurt scrap trader as :
scrap prices have been dropping in all Middle East regions last week. Market
players are still waiting finished market to pick up.
Following
were the quotes for ferrous scrap to Turkey last week:
HMS
I/II (80:20): US$ 420-430/MT
HMS
I/II (70:30) US$ 400-415/MT
Shredded
Scrap: US$ 440-450/MT
Ship
Breaking: US$ 440/MT
European
scrap continues to become more lucrative to Turkish mills than North American. A
mixed material cargo of HMS I&II and shredded material was reported last
week at around US$ 440/MT CFR Turkey. The latest offers from Europe to Turkey last
week for HMS I/II (70:30) averaged at $410/MT CFR Turkish ports, compared to much
higher offers from the US earlier last week. CIS offers to Turkey for A3 scrap
slipped to $405-$415/MT CFR Turkey.
In
contrast to the trend in the Middle East and neighboring regions, scrap prices
in Saudi Arabia have been surging. Prices of mixed scrap have moved up by US$
93/MT in last quarter.
However,
as rising local prices approach the level of falling scrap prices in Middle
East markets, local melt-shops are expected to resort to imports to cover the
gap in Saudi supplies.
In
the UAE, the market remained depressed, according to a trader who said prices
have dropped by more than US$ 40/MT compared to last month. Local HMS scrap is
now offered in the domestic market for US$ 410-425/MT.
At
the other end, in China, scrap fell by more than $10 per in the past week to
reach at US$ $470-$495/MT, delivered. Meanwhile, China’s crude steel production
in September was reported by government sources to have fallen to its lowest
level in seven months, reaching about 57 million tons.
By the end of the week, depressed demand for
scrap from northern EU countries was expected to push prices for HMS I/II
(80:20) down to $400 per ton FOB and less. However, increased freight rates
from Rotterdam and other ports may cover the same.
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