Low offers and winter stocking have resulted in handful of bulk vessels arriving to India in last two months.
SteelMint, while talking to market participants learned, there are over 5-6 bulk vessels that are about to arrive Indian port in Dec’15.
Major factor of increase in bulk shipment is price desperation among importers. Lowest price offered in market has made importers book scrap aggressively. Among the reported bulk buyers of scrap in India, half are manufacturers (importing for consumption) and half are traders.
Pre-winter stocking is also a reason for encouraged scrap imports. Scrap buyers usually start stocking scrap during Nov-Dec’15 as US and Europe (the largest scrap suppliers) are out of the market for around 15-20 days for Christmas and new year celebration. Collection of scrap in these countries also decreases during this time owing to severe cold.
Global scrap offers
Scrap offers to India remained firm at previous levels. HMS 80:20 from Europe are assessed at USD 190-195/MT and Shredded at USD 200-210/MT, CFR India. Huge quantities of scrap booked by Turkey during Nov-Dec’15 is continuously supporting global scrap prices. The yards are heard to be pre-occupied with Dec’15 bookings.
Provisional bulk scrap shipments details for Nov-Dec’15
| Expected date | Destination | Buyers | Qty in MT | Approx Deal Price | Seller |
| Nov-15 | Kandla | Hariyana | 40,000 | 238 | Shnitzer |
| Nov-15 | Kandla | Tata-international | 40,000 | 230 | Sims |
| Nov-15 | Chennai | 4-5 buyer | 30,000 | 225 | Shnitzer |
| Nov-15 | Chennai | Suryadev | 30,000 | 210 | Shnitzer |
| Nov-15 | Chennai | MTC | 10,000 | 222 | Mitsui |
| Nov-15 | Kandla | Mono/Gallant & Other | 30,000 | 212 | Shnitzer |
| Dec-15 | Kandla | Adani/Mono/Gallant & Other | 30,000 | 185 | Shnitzer |
| Dec-15 | Kandla | Anupama/Hariyana | 35,000 | 180 | Shnitzer |
| Dec-15 | Kandla | ASR | 30,000 | 185 | Shnitzer |
| Dec-15 | Chennai | MTC | 30,000 | 183 | Shnitzer |
| Dec-15 | Chennai | 4-5 buyer | 30,000 | 205 | Shnitzer |
Provisional Data
Prices in USD/MT, CFR India
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