Shredded Scrap Offers to India Fall by USD 5/MT

Increase in global scrap supply along with competitive Chinese billet offers continues to put pressure on scrap prices.

Indian imported containerized scrap market continues to witness fall in scrap offers. Shredded scrap offers, which were heard at USD 230-235/MT last week, are now at USD 225-230/MT, CFR India.

Most of the Japanese traders have started offering shredded (ISRI211) at USD 225/MT, CFR India, while scrap suppliers from Europe/US have cut their offers to USD 227-230/MT, CFR India.

In fact, a premium grade 5,000-7,000 MT of Japanese shredded scrap was heard to have sold to a Mumbai based manufacturer at USD 225/MT CFR India.

Meanwhile, offers for HMS 80:20 (Europe) also softened to USD 210-215/MT, CFR India. HMS (25 tonnes loading) from South Africa remained at USD 220-225/MT, CFR India.

Offers from Middle east remains high. HMS 1&2 offers were assessed at USD 225-230/MT CFR India. Indian importers prefer Europe/US over Middle east due to high cost.

“Shredded scrap offers from Europe and US are in the range of USD 227-230/MT CFR India, however can be negotiated to USD 225/MT. Last deal of premium shredded scrap from Japan was heard concluded at around USD 225/MT CFR Nhava Sheva for 22 tonnes container loading”, said an importer based in Mumbai.

Scrap prices fall in Turkey

Scrap, after a sharp plunge of USD 10-15/MT last week in Turkey, has dropped by another USD 5/MT to USD 198-200/MT, CFR Turkey. Fall in demand and increased supply of scrap in major scrap consuming countries like Turkey, Taiwan, Korea has led to continuous fall in scrap prices.

Chinese billet owing to its most economical offers has succeed in making its way in these economies replacing scrap and Pig iron. Current billet offers are heard in the range of USD 270-275/MT FoB China.

Global Scrap Offers as on 18 Sept’15