Offers from Europe fall further by USD 2-3/MT; Shredded offering at USD 400-402/MT CFR Nhava Sheva.
Indian importers have cut down their purchases slightly on subdued demand and INR losing ground against USD (due to dearer oil imports as a result of Iraq crisis). Containerized Scrap offers from European suppliers have slipped to USD 400-402/MT CFR Nhava Sheva and about USD 410/MT CFR Chennai port back to the levels last seen at the end of April.
At this moment, international market is steady with a small amount of fluctuation. Oversupply of Scrap in US market along with low Scrap demand in Turkey due to sluggish finished market, which is majorly affected by low exports as a result of Iraq conflict, has kept international market under pressure. It is to be noted that Turkey has strong export relation with Iraq.
Currently, Indian steel market is weak as the oncoming monsoon season reduced construction activity. At this juncture, Indian buyers prefer hand to mouth purchase of Scrap and opting more of Middle East & Europe for purchase.
Current Offers from Europe to Nhava Sheva
- Busheling are offered at USD 408-410/MT CFR
- Shredded are offered at USD 400-402/MT CFR
- HMS are offered at USD 385/MT CFR
- Turning Boring at USD 355/MT CFR
“We have recently settled a deal with Poland based exporter at USD 415/MT CFR Chennai for New Busheling Scrap, Shredded at USD 409/MT CFR and Steel Turnings at USD 360/MT CFR,” said a Chennai based importer.
South Africa is currently offering HMS 80:20 at around USD 385-390/MT CFR Mumbai and HMS 70:30 at around USD 380-385/MT CFR Mumbai. Similarly, offers from Middle East for HMS 1&2 remain stable at USD 390-392/MT CFR Mumbai.
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