Scrap offers from Europe are expected to rise by upto USD 5-10/MT on account of implementation of GRI (General Rate Increase) on freight of containers transported from Europe to Asian countries w.e.f from Apr’15.
GRI is average increase in freight rates of containers, which is largely due to demand-supply and oil rate in global market. Last year, general rates were increased by USD 200 per container of 20 ft.
According to a trade source,“General rates of containers have increased by around USD 100-150 per container w.e.f 27 Mar’15, though the market currently lacks clarity on application part.”
On a similar note another source at Mumbai shared,“Freights of containers transported from Middle East countries are also about to increase by around USD 100 per container w.e.f 1 Apr’15, which may inch up Scrap offers by USD 5/MT in coming days.”
Whereas, Scrap offers currently from Europe, South Africa & Middle East remain unchanged at USD 275-280/MT, USD 285-290/MT USD 295-300/MT CFR India respectively. No buying rush is seen in the market. Market seems to be busy with their year end closing activities.
Recent Trades
A deal of 4,000 MT HMS (25 tonnes loading) of South African origin was heard to have settled at USD 285/MT CIF Nhava Sheva.
On the other hand, a deal of 500 MT HMS 80:20 (Europe origin) was settled at USD 278/MT CIF Chennai, recently. Shipment is expected to arrive in the first week of May’15.
Global Scrap prices (in USD/MT) as on Week 14, 2015 ( 30 Mar – 05 Apr)
| Particulars | Origin | Offers in USD/MT | W-o-W |
| HMS(80:20) | Europe | 275-280 | 0 |
| HMS 1&2 | Middle East | 295-300 | 0 |
| HMS 1 | Middle East | 305-310 | 0 |
| S.Africa | 285-290 | 0 | |
| Shredded | Europe/US | 295 | 0 |
Prices are CFR Nhava Sheva, India
Source: SteelMint Research
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