India: Shredded Scrap Offers fall to USD 406-407/MT

Imported Scrap offers from US & Europe had witnessed a downfall of USD 4-5/MT starting this week. Shredded Scrap from US & Europe is being offered at around USD 406-407/MT CFR Nhava Sheva.

SteelMint, while talking to market participants assessed few reasons for fall in Scrap offers.

• Falling Sponge Iron Prices:  Sluggish steel demand and falling Sponge iron prices in India has led to a fall in Scrap prices.  Sponge iron prices have corrected by about INR 1,000/MT. 

• Depreciating Indian Currency (USD/INR): Indian currency has depreciated to 59.4/USD after appreciating to the levels of 58.48. Currently, the exchange rate has come back to the levels of 59 (Today USD 1= INR 59.32) thereby making imports comparatively expensive. 

• US Domestic Scrap Market softens: As per industry sources, domestic Scrap offer in US has seen corrections owing to abundant supply of Scrap in the market. Cheaper imports of finished steel   by US have led to a fall in consumption of domestic Scrap. Some market participants say that this might be one of the reasons, which had compelled US traders to offers Ferrous Scrap at a comparatively cheaper price to international market.

[su_pullquote align=”right”][su_note note_color=”#ededed” text_color=”#0d0c0c”]*Busheling is clean steel Scrap, not exceeding 12 inches in any dimensions, including new factory busheling (for example, sheet clippings, stampings, etc.). It does not include old auto body and fender stock. Free of metal coated, limed, vitreous enameled and electrical sheet containing over 0.5% silicon.[/su_note][/su_pullquote]

European Scrap^# offers

• Shredded Scrap at USD 406/MT CFR NhavaSheva
• HMS 1&2 at USD 385-390/MT CFR NhavaSheva
• Turning boring Scrap at USD 365/MT CFR Chennai
• Shredded Scrap at USD 410/MT CFR Chennai/Kochi
• Busheling* Scrap at USD 415/MT CFR Chennai

# German origin, offers in containers

Middle East offers to India at USD 390-392/MT CFR Nhavasheva

In the beginning of the week 24, offers from Middle East also declined by USD 7- 8/MT W-o-W. Currently, offers for HMS 1&2 are at USD 390-392/MT CFR Mumbai, which was previously at around USD 397-400/MT CFR Mumbai.

Offers at Kandla port for HMS 1&2 from Dubai are at around USD 385/MT for 20-21 MT container loading, whereas for 23-24 MT container, it is at around USD 390/MT CFR basis.