Scrap offers from Dubai is on continuous rise, touching levels of USD 390/MT, whereas Europe taking high delivery time is offering HMS 80:20 at USD 380-385/MT CFR Nhava Sheva.
Indian Scrap demand has suddenly picked up owing to rapid rise in Sponge iron prices. Being aware of the fact of Scrap shortfall in the market, domestic suppliers have raised their prices in past couple of weeks and trying their best to use this opportunity. Similarly, importers of the material are also making best use of currency parity and handsome demand in the market are importing Scrap aggressively.
[su_pullquote][su_note note_color=”#e6e6e1″ text_color=”#0e0c0c” radius=”2″]India is largest Sponge iron producer in the world with an annual production of around 23 MnT contributing around 25% of India’s total crude steel production.[/su_note][/su_pullquote]
To fulfill the urgent need of raw material in the current booming market, Indian importers are preferring imports from Middle East countries, even though offers from Middle East are dearer than Europe.
Europe HMS (80:20) from Germany, Poland & Belgium are currently being traded at USD 380-385/MT CFR Nhava Sheva, with a delivery period of 2-month. This long delivery period is making importers hesitant to buy the material, as importers are not sure about Scrap market sentiments after 2-month. Hence, they want to convert their current opportunity into profit as soon as possible.
A trader at Chennai reports, “We have recently sold Shredded Scrap of UK origin to Tuticorin at USD 415/MT. Offers from US is still not viable to India, current offers for Shredded Scrap are pertaining at USD 405/MT CFR Nhava Sheva (Mumbai) which does not looks feasible with 60 days of delivery time.”
Graph demonstrating the rise in Domestic Scrap Offers as well as Imported
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