US exporters have cut their prices for ferrous scrap in order to compete with their European counterparts in the global market. Prices for ferrous scrap have corrected by US$15-20/MT from last week. Market participants had expected this fall as offshore buyers refused to pay higher prices from US.
Two cargoes consisting of HMS, Shredded & plates scrap were being heard quoted at US$ 447/MT CFR Turkey this week i.e. down US$ 15/MT from last week. Another cargo of mixed material was sold at US$ 460/MT CFR Turkey by another trader based in Europe.
According to an exporter based in Canada “We have dropped our prices to attract the Turkish buyers who are looking for the further correction in Europe ferrous Scrap prices. We are offering scrap at cheaper rates in different levels.”
US Exporters offered HMS (80:20) I & II to Indian buyers at US$ 400/MT East Coast FOB despite of weak buying activities. Whereas, Europe offered shredded scrap at US$ 455-460/MT CFR. So, Indian buyers want US offers to be lower. And as a result, prices have corrected by US$20-25/MT from the last week's quote.
International market for ferrous Scrap still remains sluggish. Demand for Turkish Steel Re bar and Billet is weak in the global market. So, Turkish Buyers are hesitating to book their orders for scrap at such level and are expecting prices to correct further.
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