Imported Scrap Offers to India fall by upto USD 5/MT

Lack of interest in domestic steel market has moved down the imported scrap offers by upto USD 5/MT.

Imported scrap offers to India have declined by USD 3-5/MT this week. Offers for HMS 1&2 from Middle East touched USD 272/MT last Friday; down by around USD 5/MT from last week.

Similarly, European suppliers have cut their prices by USD 5/MT. HMS 1&2 offers are assessed at USD 275-280/MT and Shredded scrap at USD 300/MT on CIF India basis.

Declining billet prices in Indian market remained a major concern for steelmakers. Buyers are unwilling to take position at higher levels. Most of steel mills prefer domestic scrap and sponge iron over imported scrap.

Billet prices in Mumbai fell by INR 500/MT to INR 27,500/MT and sponge iron by INR 1,000/MT to INR 17,600/MT in major market such as Raipur in two week’s time.

Whereas if talked globally, scrap prices in Europe have fallen slightly by USD 2-4/MT, FoB Rotterdam in few weeks owing to suppressed Euro & Lira against strong USD. Euro & Lira recorded a fall of around 3.5-4% W-o-W.

Weekly Trade Log

1. Premium HMS of Australian origin available at INR 19,000/MT, High Sea Mundra Port and offered at INR 20,100/MT after port clearance
2. 2,000 MT of Europe/US origin Shredded scrap was sold at USD 300MT, CFR Nhava Sheva last week
3. A deal of 500 MT Dubai origin HMS 1 settled at USD 285/MT, CFR India for Ludhiana ICD
4. Another deal of same origin for 12 containers of HMS 1 (25 MT loading) was settled at USD 288/MT, CFR Nhava Sheva
5. 500 MT HMS 1&2 of Dubai was sold at USD 273/MT, Nhava Sheva
6. Bulk shipment of Australian scrap of 31,500 MT was unloaded at Kandla Port; owned by MTC
7. The shipment, which is mixture of 21,000 MT Shredded scrap and 10,500 MT of HMS Premium scrap, was booked at about USD 280-285/MT around a month and half back

Currency recorded as on 25 May’15
USD 1 = EUR 0.91; LIRA 2.6; INR 63.53

Scrap Prices as on 25 May’15

Source: SteelMint Research