Europe offers Scrap at USD 330-335/MT CFR India

Weak buying all over the globe pulls Scrap offers to USD 330-335/MT CFR India.

Week 45 begun with a fall of USD 5/MT in Scrap offers. Few deals of HMS 1&2 of European origin were heard to be settled at USD 330-335/MT CFR India; the same is offered by Middle East exporters.

One of the European based exporter sold HMS 1&2 at USD 332/MT CFR Nhava Sheva. Whereas, a Mumbai based importer confirmed its booking for HMS 1&2 (Middle East) at USD 333/MT CFR Nhava Sheva. Most of the offers from Middle East suppliers were in the range of USD 333-335/MT CIF Nhava Sheva.

One of the top importers in Mumbai reported, “There is increase in inquiries, but fewer buying is seen in the market. High volatility in prices has kept buyers cautious while booking. We believe, if the Scrap prices hold at the current level even for a week; buyers may show greater interest, leading to improvement in bookings.”

Shredded Scrap of European origin is currently being offered at around USD 345/MT CFR Nhava Sheva, which will be loaded by November-end.

*INR/MT
Source: SteelMint Research

Indian Scrap Buying likely to improve – Reports

Falling Scrap prices may increase Scrap imports for a while owing to deteriorating condition of Sponge iron industry. Sponge manufacturers are not willing to reduce offers due to critical supply of Iron ore & coal in the domestic market.

Market participants also believe that Europe and US generally remain closed in December on the grounds of winter & Christmas vacations. Indian buyers interested in European/US Scrap have to take position before mid of November, so that loading can take place in late November or early December.

It takes about 45-60 days for containers from Europe/US to reach India and approximately 7 days and 25-30 days from Middle East & South Africa respectively, which becomes a key factor while bookings.