Imported Scrap Offers fall Marginally; Suppliers anticipate Stability

Scrap offers from Europe & US to India opened with a slight correction this week. Indian importers witnessed a fall of around USD 5/MT from last offers.

Currently, offers for HMS 1&2 are assessed at around USD 260-265/MT from Europe & South Africa to India. Whereas, Middle East suppliers have still hold offers at USD 280-285/MT levels.

HMS 1 (HMS 90:10) is also offered at varied prices like USD 275/MT from South Africa and USD 290-295/ MT from Middle East. Shredded scrap from major sources like Europe & USA is offered at USD 270-275/MT, CFR India. Even a deal of US Shredded of about 1,000 MT was heard to settle at USD 270/MT , CFR Chennai.

A manufacturer in Jalna quoted, “Market is in wait & watch mode; not many mills are willing to take position looking at consistently declining prices in the global market.”

On the other hand, suppliers believe that prices have almost bottomed out and there is little scope of correction from these levels.
“We do not see prices falling below these levels. Furthermore, China will be out of the market for week long holidays (18-24 Feb’15), which will cut down supply for a short while,” said a European Scrap supplier.

Bangladesh Steel Mills prefer Billet over Scrap

Bangladesh based steel mills are more inclined towards importing Billet than Scrap. Participants highlighted that power issues in the country have made steel making non-viable using Scrap.

“Current offers for Scrap (Shredded) from Europe/US are in the range of USD 280-285/MT and Australia at USD 275/MT, CIF Bangladesh. On the flip side, Billet from China are offered in a cheaper range of USD 375-380/MT and Russia at USD 395-400/MT, CIF Bangladesh, making Billet imports much viable.” said a steel miller based in Bangladesh.

Imported Scrap Prices as on 17 Feb’15

Offers in USD/MT, CFR  Nhava Sheva
Source: SteelMint Research