Ferrous scrap offers to India may correct in upcoming days owing to fall in scrap demand in global market and bearish steel sentiments in India.
Imported scrap offers to India remained stable and on low side this week with Shredded scrap offers hovering in the range of USD 205-207/MT, CFR India and HMS within USD 185-205/MT.
Severe cold in western nation has made US and European suppliers to keep HMS scrap offers firm at USD 185-195/MT and Shredded at USD 205/MT, CFR India. While, UK suppliers are still offering Shredded at USD 210/MT, CFR India.
Global scenario
Few steel mills in Europe and US market are reported to have shutdown owing to cold whether. Thus, participants are expecting little price corrections in scrap in coming days.
Meanwhile, the largest scrap importer, Turkey is heard to have lowered its scrap booking owing to its overbooking and closure of few major steel plants. Participants expect Turkey to (return back in the market) start buying by February end. This is further going to add selling pressure on scrap suppliers; may results in price corrections.
Indian scenario
Scrap importers and traders are getting low numbers of inquiries. Buyers looked hesitant and showed buying interest at USD 190-195/MT, CFR India for Shredded.
Delay in MIP imposition and weak demand for steel in domestic market have already influenced the buyers for inactivity. Besides, sharp devaluation in INR against USD (68.04 as on 27 Jan’16) has added unwillingness among buyers.
Global Scrap Offers as on 27 Jan’16
| Particular/Delivery | Size/Grade | Prices |
| CNF India | HMS(80:20), Europe | $185-195 |
| HMS-1, Middle East | $210 | |
| HMS-1&2, Middle East | $205 | |
| HMS-1&2, S.Africa | $195 | |
| Shredded, Europe | $205 | |
| Shredded, US | $205 | |
| CNF Taiwan | HMS(80:20), US | $150 |
| CNF Turkey | HMS(80:20), US | $185 |
| FOB Japan | Busheling Shredded | $178 |
| FOB Europe | HMS(80:20) | $157 |
| FOB US East Coast | Shredded | $175 |
Source: SteelMint Research
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