Rising steel prices in the Indian domestic market has given support to imported Scrap offers. Steel prices have raised by upto INR 1,000/MT (USD 16/MT) in last few trading sessions. Whereas, imported Scrap offers have gone up by USD 5-7/MT.
Recent rise in demand for Ingot and Billet in North have resulted in improved offers for imported Scrap in India. Billet offers witnessed a gain of around INR 1,000-1,500/MT in a weeks time, with major market offering at INR 30,800/MT (ex-Mandi Gobindgarh) & INR 30,500/MT (ex-Mumbai).
Current offers of European Scrap have surged to USD 265/MT for HMS 1&2 and USD 280/MT for Shredded Scrap. Whereas, Middle East offers are in the range of USD 290-295/MT for HMS 1&2. Few deals of Middle East for HMS 1&2 Scrap were heard to be settled at USD 291/MT and for Blue Steel at USD 316/MT, CIF Nhava Sheva.
A Scrap supplier based in North India shared, “Yes, demand for Scrap has improved. People are taking quick position looking at sharp rise in demand and prices of Billet. Offers have gone up by USD 5/MT. Offers for HMS 1&2 have raised to USD 265/MT & USD 290/MT from Europe & Middle East respectively.”
On similar lines, an indentor based in Mumbai mentioned that demand has certainly gone up owing to rise in steel prices. Current offers for Shredded from Europe and US will not be less than USD 280/MT, CIF Nhava Sheva (delivery in April).
Market in South (Chennai) remains unaffected as offer of sentiment driver, Billet is stable here. Scrap offer here is at USD 265/MT for HMS 1&2 and USD 275/MT for Shredded, though buying interest is seen at USD 250/MT and USD 260/MT respectively for both the material, which is around USD 15/MT low from the offered price.
A deal of UK origin Shredded Scrap was heard to finalize at USD 275/MT, CIF Chennai a day before.
Offers for Premium Scrap from South East Asia (Singapore) to Chennai were USD 295/MT for P&S Scrap and USD 310/MT for CRC Scrap, CIF Chennai.
Anticipation of Depreciation in INR promotes Scrap Booking
Indian Rupee has witnessed marginal fall of 0.2% against USD in a week’s time. Fear of Rupee depreciation has charged up the Scrap buyers to take quick positions. Currently, Indian Rupee is trading at 62.18 per USD.
Steelmakers awaits Union Budget
Indian steelmakers are hopeful that government will impose either duty or trade barrier to check rising imports from China and CIS countries in its union budget to be presented on 28 Feb, 2015.
Trade Wise
1. Indian Billet prices have risen by around INR 1,000-1,500/MT W-o-W. Current prices are INR 30,500/MT (ex-Mumbai) and INR 27,500/MT (ex-Raipur)
2. Middle East based supplier is offering HMS 1&2 at USD 292-293/MT, CIF Nhava Sheva
3. Japanese trader offering Busheling Shredded scrap from Japan at USD 275-280/MT, CIF India.
Imported Scrap offers, as on 19 Feb’15
| Grade | Origin | Offers | W-o-W |
| HMS 1&2 | Europe | 265 | + 5 |
| South Africa | 265 | + 5 | |
| Middle East | 290 | + 10 | |
| Shredded | Europe | 280 | + 10 |
| HMS 1 | Middle East | 300-305 | + 5 |
| Busheling Shredded | Japan | 275-280 | – |
| P&S | Singapore | 295 | – |
| CRC Scrap | 310 | – |
Offers in USD/MT, CIF India
Source: SteelMint Research
Leave a Reply