Though imported Scrap offers in India remain unchanged at previous levels, buyers hesitated to show interest after fall in steel prices.
Indian imported Scrap market remained shy this week from buyers’ end, with European HMS 1&2 resting at USD 270-275/MT and Shredded at USD 290-295/MT CFR India.
After a rise in Scrap offers last week, fall in Billet prices in Mumbai by INR 1,000/MT (W-o-W), at INR 28,500/MT (today), has controlled further growth in Scrap offers. Offers from the Middle-east also looked subdued at USD 295-300/MT levels which traded confidently at levels of USD 300-305/MT last week.
To add further clarity on buyers’ (manufacturers) side, a Mumbai based Re-bar manufacturer shared, “Yes, there is fall in offers of around USD 4-5/MT in past 2-3 days. Correction in Billet prices with weakening currency is making us doubtful.”
He further added, “Offers for HMS (25 tonnes loading) from South Africa dropped to USD 280/MT this morning, from USD 290/MT, CFR India last day.”
Also a deal of 500 MT Boring scrap was heard to settle at USD 250/MT, CFR Nhava Sheva, which would then be routed to Hyderabad ICD port.
Another Scrap importer from Chennai shared his thoughts on the current scenario, “We recently settled two shipments of Shredded Scrap; both at USD 293/MT, CFR basis and are still offering in the range of USD 290-293/MT. However, we observed buyers are now reluctant for the same offers after witnessing fall in steel prices.”
The above two deals for Shredded Scrap were of US & Europe origin, 1,000 MT moving to Chennai and 500 MT to Cochin at USD 293/MT CFR Chennai/Cochin.
[su_pullquote align=”right”][su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]A bulk shipment of European Shredded of 5,000 MT and above is expected to arrive at Nhava Sheva port in the last week of Mar’15. The deal was settled at USD 285/MT, CFR India, a month ago.”[/su_note][/su_pullquote]
Bangaldesh and Pakistan manufacturers attract Scrap Exporters
With the arrival of spring & summer season, we hear that Bangladesh and Pakistan are grabbing all the attention of Scrap exporters by booking at premium rates than India.
A European exporter trading with India shared their choice saying, “Currently we are receiving USD 10-15/MT higher response from Bangladesh and Pakistan as compared to India. So we are enjoying trading with them right now.”
Offers for Bangladesh was heard at USD 280-285/MT for HMS 1&2 and USD 305-310/MT for Shredded Scrap, CFR Chittagong. Sources even confirmed that these offers were happily accepted by manufacturers here, with few deals settled as a result.
Imported Scrap Offers as on 11 Mar’15
| Particular | Origin | Offers in USD/MT, CFR India | W-o-W Change |
| HMS 1&2 | Europe | 270-275 | 0 |
| South Africa | 270 | 0 | |
| Middle East | 295-300 | -5 | |
| HMS 1 | South Africa | 280 | -10 |
| Middle East | 305 | -5 | |
| Shredded | Europe | 290-295 | 0 |
| Boring | Brazil | 250-255 | -5 |
Source: SteelMint Research
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