Imported Scrap offers to India have slipped by USD 10-15/MT in a month’s time. Europe surprises with discounted offers for Shredded Scrap by upto USD 5-10/MT this week.
Falling Iron ore prices and cheaper exports made by Chinese sellers have led to decline in Scrap consumption. Major Scrap suppliers such as Europe, US and Middle East have started subsiding their offers viewing the weak demand. World’s largest Scrap importer, Turkey is currently buying Scrap at a discounted rate of USD 345/MT CFR Iskenderun (Turkey) with a fall of USD 35-40/MT M-o-M.
Europe is currently offering HMS 80:20 at around USD 332/MT FoB Rotterdam and around USD 360/MT CFR India. Participants say deals can be settled at USD 355-357/MT if well negotiated. While, Shredded Scrap is being offered at USD 375-380/MT CFR Nhava Sheva/Kandla.
Market participants highlighted that falling Euro against USD has compensated fall in Scrap prices.
Source reported, “A deal of 2,000 MT of Shredded Scrap was closed at USD 378/MT CFR Pipavav port. Consignment will reach within 1-month from Europe.”
Suppliers at Middle East are offering HMS 1&2 at around USD 365/MT and HMS-1 at USD 368-370/MT CFR Nhava Sheva.
One of the importer based in Jalna reported, “We have booked around 300 MT HMS-1 Scrap at USD 364/MT from Dubai. The offers for HMS-1 were USD 370/MT CFR India.”
Some smelters in India are slowly getting prepared for revival of the market and have started operating with full capacity after almost 2-month time. Market participants expect prices of domestic Scrap may fall in near future, anticipating increase in supply of Scrap during Deepawali festival.
Slump in International Scrap Prices
Experts believe constant fall in Euro against Dollar is creating room for European seller to trade Scrap even at lower prices receiving better realization in hand. Whereas, in India, depreciating INR is further resisting Indian importers to buy Scrap, making it more expensive.
Leave a Reply