Imported Scrap grabs interest of Indian buyers owing to improved demand, on the back of stable Steel prices and Indian currency. Current offers for HMS 1&2 from Europe/UK assessed at USD 275-280/MT & Middle East at USD 295/MT, CIF Mumbai, India basis.
Slight appreciation in domestic Ingot/Billet by INR 200-500/MT, supported by Rupee hike of 0.50 against USD in a week’s time, has given Steel manufacturers some confidence for booking Scrap. Currently Rupee is traded at 62.46 against USD.
While talking to a Europe based Scrap exporter, he shared, “Offers for HMS 80:20 are around USD 275-280/MT and for Shredded at around USD 295/MT on CIF India basis. Strong Euro against US dollar and rise in demand in domestic market will keep offers high.”
Whereas, another exporter in Middle East mentioned, “Scrap demand have showed some sign of recovery, owing to low stock levels with Indian buyers. Currently we are offering HMS 1&2 (22-23 tonnes loading) in the range of USD 295-300/MT and HMS 1 (25 loading) at USD 305-307/MT, CIF Mumbai, India.”
“Pakistan and Bangladesh buyers are active at the moment”, he further added.
Rise in Global Billet Price supports Scrap
With Chinese Billet offers inflating by USD 5-10/MT and Indian export tenders fetching bids higher by USD 10-15/MT, market participants seems optimistic.
South African Currency appreciates about 5% W-o-W
Improvement in South African Rand (ZAR) in the past one week has made Scrap suppliers wilful about raised offers. ZAR traded at 12.8 /USD last week , which appreciated to 11.7/USD. South African exporters are offering HMS 1 (25 tonnes loading) at USD 285-290/MT CIF Indian port. South Africa is one of the largest suppliers of Scrap to India, which contributed around 16% of total Scrap imports in FY14.
Lack of purchasing activity in Scrap market since past couple of weeks had left Indian buyers with marginal stock. Hence, tight supply clubbed with the currency appreciating on the sellers’ part is expected to result in price rise of another USD 5-10/MT in near future.
Global Scrap prices (in USD/MT) as on Week 13, 2015 ( 23 Mar – 29 Mar)
| Particulars | Origin | Offers in USD/MT | W-o-W |
| HMS(80:20) | Europe | 275-280 | 5 |
| HMS 1&2 | Middle East | 295-300 | 3 |
| HMS 1 | Middle East | 305-310 | 5 |
| S.Africa | 285-290 | 5 | |
| Shredded | Europe/US | 295 | 5 |
Prices are CFR Nhava Sheva, India
Source: SteelMint Research
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