Imported Scrap Offers to India Stable on Limited Buying

Scrap suppliers yet to find direction; hold the offers at USD 315/MT on re-opening of market after Christmas vacation.

Scrap buyers eagerly waited for Scrap market to resume in order to get directions while taking position. But, looking at current scenario, everything seems to be stable and the confusion continues to breath in the market that whether prices will fall further or has bottomed out?

European suppliers speculated prices to rise owing to foggy weather existing in European nations, creating logistic troubles. But, low demand and high supply owing to resumption of activities after holidays, had kept the prices firm (on optimistic note). Also, falling Euro against Dollar gives an additional benefit to European suppliers and they have cushion to cut prices in case demand does not picks up.

Currently, HMS 80:20 Scrap offers from Europe to Turkey are around USD 318-320/MT, CFR Turkey Port and to India are around USD 315/MT , CFR India. Whereas, Shredded Scrap offers are observed at around USD 330/MT, CFR Nhava Sheva/Chennai. However, few buyers were heard negotiating at USD 328-330/MT levels, to take positions.

[su_pullquote][su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]Indian Rupee trades at 1-week high
INR witnessed sharp recovery of 40 paise and closed at 1-week high of 63.17 against Dollar. After accessing the appreciation in Rupee, Scrap exporters are likely to hold their offers. [/su_note][/su_pullquote]

Scrap market in Middle East also continues to offer at USD 315/MT, CIF West Coast of India (WCI). An exporter cum yard owner based in Dubai shared to have settled deal of about 250 MT HMS 1&2 at USD 314/MT, CIF Nhava Sheva.

On the other hand, an importer-cum-Scrap trader in Gujarat shared of offering Dubai origin HMS (25-tonnes-loading) at USD 318-320/MT, CIF West Coast of India and is getting inquiries at the level of USD 310/MT from Mills.

Expecting the bullish sentiments across the nation in January, few Steel giants have before hand booked large quantity of Scrap. Vessels of MTC group, Liberty resources and two more are waiting for anchorage at Kandla Port carrying 28,000-32,000 MT of HMS, Shredded & P&S Scrap.

[su_pullquote align=”right”][su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]Japanese Trader offers High Quality Busheling Scrap
A Japanese trader is offering premium quality Busheling Scrap to India market at around USD 335/MT, CIF Nhava Sheva (in containers). This is unusual for India, as Japan largely supplies Scrap to Korea and Taiwan. [/su_note][/su_pullquote]

Euro falls 9 years low against USD

At present, fall in Euro to 9-year low against Dollar is making headlines. This depreciation in currency will affect Scrap market to what extend may be a point of concern to Scrap traders & buyers in India. However, European Scrap exporters will be benefited by it.

In outlook, Scrap market sentiment will get more clarity in the next trading week, when all suppliers return into market from vacations.

USD 1= INR 63.20