Imported Scrap Offers to India fall by USD 5-10/MT W-o-W

Containerized Ferrous Scrap offers to India have fallen by up to USD 10/MT owing to weak demand and uncertainties in the global market.

[su_pullquote align=”right”][su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]A deal of Shredded Scrap was heard to settle between Mumbai based Steel manufacturer and European supplier at USD 320/MT, CFR Nhava Sheva Port.[/su_note][/su_pullquote]

Imported Scrap market in India has witnessed a fall in offers by USD 5-10/MT. Currently, offers from Middle East are heard to be around USD 305/MT, CFR West Coast India (WCI). However, inquires are observed at USD 300/MT levels.

Similarly, offers from Europe have experienced a steep fall of around USD 5-10/MT with HMS 1&2 being offered at around USD 300-305/MT and Shredded at USD 320-325/MT, CFR WCI.

[su_pullquote][su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]Second lot of 15,000 MT Shredded Scrap by Hariyana Group was heard to have concluded at around INR 21,000-21,500/MT ex-Kandla.[/su_note][/su_pullquote]

“Buying is very dull despite strong Indian currency. Most of Steel smelters are anticipating that improving Iron ore supply may put pressure on Sponge iron prices. We have trimmed our offers for HMS 1&2 to USD 305-306/MT, CIF Nhava Sheva, but still could not conclude any deal”, said an exporter based in Middle East.

On the other hand, if we go along the sentiment, which are driving market, we may conclude with following factors responsible for making Scrap market unpredictable.

1. Strong India Rupee (INR): Experts believe that falling oil prices will support Indian Rupee and expect it to trade in the range of 60-61/USD in near-term. Buyers are cautious while booking orders.
2. Falling Euro & Ruble aids Scrap Exporters: On-going fall in European & Russian currency is providing benefit to Scrap exporters, with higher realization on sales. Owing to it, they have got cushion to further trim prices, in case demand remains low.
3. Cheaper Billet & Slabs from China: South East Asian countries, which contributes a significant portion of containerized Scrap are getting cheaper offers of Billet and Slabs from China at around USD 405-410/MT, CIF levels. This is creating shift in interest of mills on importing Billets rather than Scrap.
4. Scrap Prices in Turkey slide down: Imported Scrap prices in world’s largest Scrap consumer and importer, Turkey have declined. Lower Scrap purchase from steel mills on account of poor finished sales has led to this price fall, which may soon influence the global Scrap offers. Currently, Turkey is trading HMS 80:20 at USD 315-317/MT, CFR Port.
5. Domestic Affairs: Pongal festival in India dominated the market sentiments of Southern part. No fresh offers and deals were heard in market because of inactivity owing to Pongal. Last offers were floated at USD 310-315/MT for HMS 1&2 and USD 330-335/MT for Shredded Scrap, CFR Chennai.

Imported Scrap Prices as on 20 Jan’15

Prices in USD/MT, CFR Nhava Sheva basis

Exchange Rate: USD 1= INR 61.84