After scrap offers have touched an all time low, suppliers have tried to hold scrap prices at the same level.
Offers for containerized HMS 80:20 from Europe/US have remained in the range of USD 185-190/MT and shredded at USD 190-200/MT, CFR India.
Distressed selling seems to be evaporating from the market. Now, no seller is ready to sell shredded below USD 195-200/MT, CFR India levels owing to limited stock available in market.
Most of the scrap suppliers are heard to have cut down their scrap collection by upto 50% looking at continuous price fall and increased operating cost.
Despite buyers are anticipating further fall in scrap prices, few deals of shredded scrap in small quantities were heard in the levels of USD 195/MT last evening.
HMS (80:20) scrap offers from other region such as Middle East and South Africa have also remained firm at USD 200-205/MT and USD 195-200/MT, CFR India. HMS 1 (25 MT) of Dubai-origin is offered at USD 205/MT, CFR.
“This week shredded scrap offers are hovering in the range of USD 195-200/MT, CFR India. Some deals of US shredded have been reported at USD 195/MT, CFR Nhava Sheva and Europe origin HMS at USD 187/MT, CFR India. We do not see prices going down from these levels”, said a large scrap trading company based in Mumbai.
On similar lines, a smelter based in Mumbai confirmed to have bought some quantity of shredded scrap from US at USD 195/MT, CFR. He also mentioned that offers for HMS 1&2 from Middle East are around USD 200-205/MT, CFR India.
BIR reports – Pressure may continue
According to statistical report (H1 CY15) by the BIR Ferrous Division, percentage fall in scrap usage by major scrap buyers like Turkey, South Korea and China is much higher than the scrap collection worldwide. This imbalance will therefore, continue to put pressure in scrap prices.
Trade-wise
1. HMS 80:20 from Europe sold at around USD 185-187/MT, CFR Nhava Sheva.
2. About 500 MT shredded (Europe origin) booked at USD 195/MT, CIF Nhava Sheva.
3. 5,000 MT of Europe origin-shredded sold at USD 203/MT, CFR Pakistan.
4. Shredded offers from US/Europe are hovering in the range of USD 200-205/MT, CFR Bangladesh.
5. Japanese offers for busheling shredded scrap are assessed at USD 215/MT, CFR Nhava Sheva and
6. Japanese shredded offers are around USD 205/MT, CFR Nhava Sheva.
Global Scrap offers as on 21 Oct’15
| Delivery | Size/Grade | Prices | Change |
| CNF Chennai, India | HMS(80:20),Europe | 185-190 | + 10 |
| CNF Mumbai, India | HMS(80:20),Europe | 185-190 | + 10 |
| HMS-1,Middle East | 205-210 | 0 | |
| HMS-1&2,Middle East | 200-205 | 0 | |
| HMS-1&2,S.Africa | 195-200 | + 5 | |
| Shredded,Europe | 195-200 | + 7 | |
| Shredded,US | 190-200 | + 5 | |
| CNF Taiwan | HMS(80:20),US | 145 | 0 |
| CNF Turkey | HMS(80:20),US | 167 | 0 |
| FOB Japan | Busheling Shredded,Japan | 175-180 | 0 |
| FOB Rotterdam, Europe | HMS(80:20),Europe | 155 | 0 |
| FOB US East Coast | Shredded,US East Coast | 170 | 0 |
Source: SteelMint Research
Prices in USD/MT
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