US/European Scrap participants are on holidays; sales remain closed. No clarity in offers this week.
Seaborne scrap market across the globe remained silent on the occasion of Christmas and New Year celebration. Participants were reported to remain on holidays. Hence, no fresh offers/trades were heard in market. It is expected to get clarity in offers by next week.
While, scrap offers from Middle East inched up by around USD 5-10/MT to USD 215/MT, CFR India for HMS 25 MT loading. The rise in offers is supported by material shortage in Indian domestic market and rising steel prices. Indian mills preferred to book scrap from Middle East countries to avail faster delivery and optimize the opportunity during bullish market.
HMS 80:20 offers from Europe remained at USD 190-195/MT, CFR India. While, not much of clarity was found with shredded offers from Europe and USA owing to closed trades. Shredded in previous week was offered at around USD 205/MT, CFR India. Similarly, no fresh offers were heard in market from South Africa and other African nations.
Outlook
Scrap prices may come under pressure during January end and February owing to increased booking of ship breaking cargoes in the month of December. Moreover, return of scrap sellers in market after holiday may also build some price pressure.
Global scrap offers as on 05 Jan’16
| Particular/Delivery | Size/Grade | Prices in USD/MT | W-o-W Change |
| CNF India | HMS(80:20), Europe | 190 | 0 |
| HMS(80:20), Europe | 190 | 0 | |
| HMS-1, Middle East | 215 | + 5 | |
| HMS-1&2, Middle East | 205 | + 5 | |
| HMS-1&2, S.Africa | 205 | 0 | |
| Shredded, Europe | 205 | 0 | |
| Shredded, US | 205 | 0 | |
| CNF Taiwan | HMS(80:20), US | 150 | 0 |
| CNF Turkey | HMS(80:20), US | 185 | 0 |
| FOB Japan | Busheling Shredded | 178 | 0 |
| FOB Europe | HMS(80:20) | 157 | 0 |
| FOB US East Coast | Shredded | 175 | 0 |
Source: SteelMint Research
Leave a Reply