Japanese Scrap Traders Become Active in India and Bangladesh

South Asian scrap buyers’ shift in interest to billet is dragging Japanese scrap suppliers to India.

Japanese scrap traders have become active in India and Bangladesh due to low buying interest from Korean and other South East Asian mills, which are conventional markets for Japan.

Most of the steel mills in Korea, Vietnam, Taiwan, Indonesia have switched to Chinese billet due to narrowing price difference between imported scrap and billet.

Current offers for Japanese good quality shredded scrap (ISRI 211) are at around USD 235/MT CFR India and Bangladesh, whereas shredded busheling (ISRI 207) scrap offers are at around USD 240-245/MT, CFR India in containers.

A Bangladesh based scrap importer reported that Japanese A-grade shredded scrap was sold at USD 235/MT, CFR Chittagong (break bulk) last week. He further mentioned that scrap imports from Japan is not a regular trade, but low buying from Korea and other markets have forced Japanese traders to sell their material to India and Bangladesh.

An Indian steel smelter who received Japanese shredded scrap offer at USD 235/MT CFR India (in containers) mentioned that he is not willing to take position as he anticipates prices may fall further.

Global Scrap Offers as on 14 Sept’15

Source: SteelMint Research