Imported HMS Scrap Offers fall to USD 360-365/MT CFR India

Amid falling Indian currency and price resistance for Scrap in Turkey, imported Scrap offers could not find support in Indian market. It is being offered in the range of USD 360-365/MT CFR Nhava Sheva.

Imported Scrap offers in past 2 weeks have fallen by USD 10-15/MT CFR India. In this context, the dull demand in India is not wholly responsible as there are several other factors governing the imported Scrap offers. Adding to it, the prices of finished products (primary manufacturers) are confirmed to have declined by INR 500-1,000/MT in the domestic market, keeping sentiments further stressful for the participants. It seems like, Indian Scrap consumers are very conscious about the procurement.

Market participants confirmed that European Scrap offers for HMS 1&2 have fallen further by USD 5/MT and it is being offered in the range of USD 360-365/MT CFR Nhava Sheva. Similarly, offers from Middle East are heard to be around USD 365/MT. Whereas, South Africa is offering HMS 1&2 at USD 360/MT CFR Nhava Sheva.

Depreciating Indian currency

Continuous depreciation of INR against USD from past 7 days is resisting the manufacturers to accept the offers even at USD 360/MT, which makes import expensive.

Fall in Turkey Purchase Price by USD 25/MT

Offers for HMS Scrap in Turkey have slipped by USD 25/MT in a month’s time. This price fall has became a major influencer in the global market, making giant suppliers of Europe and other to correct its offers.

Experts believe Turkey’s buying appetite for Scrap may further fall on the backdrop of political turmoil with Islamic state, which is trying to enter Turkey, creating war situation.

Price Pressure built by China in Global Market

Falling steel prices in Chinese market has increased the impact on global steel prices. With imported offers for finished and semi finish being so competitive from China, importers are willing to go for that rather than buying Scrap, said industry experts.

Depreciating Euro against Dollar

Continuous fall in Euro value against dollar from past two months is making Europe Scrap sellers to export more even at cheaper rates. HMS Scrap has fallen by USD 20-22/MT in two months time from around USD 350/MT FoB to USD 328/MT FoB Rotterdam.

Saturday, 22nd November 2014

 

+91 70241 49333  |  events.steelmintgroup.com  |  events@steelmintgroup.com