This week, there’s a fall in imported scrap offers by 3-5/MT to India owing to poor demand. Offers for HMS 1&2 declined by USD 5/MT, European offers are around USD 270-275/MT and Middle East at USD 270/MT, CFR India.
Shredded scrap (ISRI 211) of Europe/US origin offers were assessed at USD 295/MT CFR India against USD 300/MT last week.
Fall in prices of billet at major scrap consuming markets like Mumbai, Ludhiana & Chennai have directly impacted buying interest in imported scrap.
Stronger USD against Euro & Lira has provided room to European scrap suppliers to reduce their offers according to the demand.
It’s worth noticing that the depreciating INR hasn’t been able to stimulate scrap buying interest in market. The shift in buying interest can be perhaps, availability of cheaper domestic scrap and sponge iron in the local market.
Trade wise
- A deal of 500 MT HMS 1&2 of Dubai was settled at USD 270/MT, CIF Mundra port
- Europe shredded scrap was offered at USD 290-292/MT to a Mumbai based rebar manufacturer
- A vessel of 25,000 MT of Australian mix HMS scrap was seen at Vizag port
- South African offers for 25 tonnes loading HMS slipped to USD 280/MT, CFR India
- 7 bulk vessels of ferrous scrap were imported in April and May, 2015
Scrap Offers as on 2 Jun’15
| Particular/Delivery | Size/Grade | Offers in USD/MT | W-o-W Change |
| CNF Mumbai, India | HMS(80:20),Europe | $274 | – 3 |
| HMS-1&2,Middle East | $270 | – 3 | |
| HMS-1, Middle East | $285 | 0 | |
| HMS-1, S.Africa | $280 | -5 | |
| Shredded,Europe | $295 | – 7 | |
| Shredded,US | $295 | – 5 | |
| CNF Taiwan | HMS(80:20),US | $223 | 0 |
| CNF Turkey | HMS(80:20),US | $285 | 0 |
| FOB Rotterdam, Europe | HMS(80:20),Europe | $250 | 0 |
Source: SteelMint Research
INR was last recorded at 63.87 against USD as on 2 Jun’15
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