Fall in global steel Scrap prices and currency depreciation in Japan & Korea, make Japanese & Korean Scrap traders to explore Indian market. This has come as a surprise for many steelmakers in India as Korea itself is amongst the largest Scrap importers.
Steel indentors & smelters, who have received offers from Korean and Japanese traders, were a bit surprised and expressed, “Though, we have never imported Scrap from this region, we will not mind importing if we get competitive offers.”
Rising Imports from China
Steel imports from China, may it be finished or semi finish, has sharply increased in Korea. This may also be a reason for Scrap suppliers to find new destination in order to dump their product (Scrap).
[su_note note_color=”#f0f0f1″ text_color=”#0b0a0a”]The Korean Steel Association (KOSA) reported a surge of 34% in imports of steel products from China
According to KOSA, the import of Chinese products surged by 34.9% last year compared with a year earlier, reaching 13.4 MnT. The figure is the second highest, following 14.31 MnT in 2008 when the county experienced short supply. The import of Chinese Iron & Steel products has steadily increased every year from 8.69 MnT in 2010. The figure shows a sharp upward trend after it surpassed 10 MnT in 2011.
Source: Business Korea[/su_note]
Scrap Offers from Nations
Industry experts highlighted that offers for Scrap specially CRC cuttings from Japanese and Korean traders have increased in past few days. Currently, offers for CRC Scrap (shredded) are assessed at USD 330-335/MT and for bundled scrap at USD 340-345/MT on CIF West Coast of India basis. Whereas, HMS 1&2 are offered at USD 318-320/MT, HMS 1 at USD 322-325/MT and P&S Scrap at around USD 328/MT, CIF Nhava Sheva.
Europe & Middle East offers Cheaper Scrap
Scrap offers from Europe and Middle East are cheaper than Scrap offered by Japanese and Korean traders. HMS 1&2 offers from these countries are assessed at USD 300-305/MT, HMS 1 at USD 315/MT and Shredded at USD 320-325/MT, CIF Nhava Sheva.
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