Falling Scrap and Billet prices in the global market has made European Ferrous Scrap suppliers to reduce their offers to India. Offers of HMS 1&2 from Europe/UK are assessed at USD 295/MT and Shredded at around USD 315-320/MT, CIF West Coast India.
“We are making selective purchases as we expect Scrap prices will come down further. Indian steel prices are also under pressure owing to rising Billet offers from China and Russia. Prices may correct by upto INR 1,000/MT (USD 16/MT), if the government does not put any kind of additional import duty on Steel imports”, said a Steel smelter based in Mumbai.
Another smelter based in Gujarat mentioned to have offers for Shredded Scrap from UK at USD 310-315/MT, CIF Gujarat Port.
Falling Iron Ore Prices in Indian Market
Falling Iron ore prices in Indian market is an another reason why steel smelters are not making aggressive purchases for imported Scrap. Steel-making in India is pre-dominantly through Sponge iron route. Falling Iron ore prices means possible fall in Sponge iron prices. 25% of steel is produced from Sponge iron and around 15% from Scrap.
Declining Scrap Prices in Turkey
Imported Scrap prices in Turkey continue to decline this week. HMS 1&2 prices are assessed at USD 306-308/MT, CFR levels (down by USD 8/MT W-o-W). Turkey is the largest importer of Scrap in the world. Falling Scrap prices in Turkey will certainly impact global Scrap market.
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