Ferrous
scrap offers in global market have moved up on limited scrap supply coupled
with rise in iron ore prices, for November deliveries. Market sources expect
offers to rise further on the back of winter season.
HMS
1&2 (80:20) was sold at $360/MT CFR and shredded at $368/MT CFR Turkey on
Tuesday. Scrap suppliers are looking to supply more materials ahead of winters,
when scrap demand remains low. As a result, offers for HMS (80:20) blend have
increased by $3-5/MT CFR yesterday.
Despite
enough stock with mills, offers are likely to move up in the coming weeks for
November shipments.
According
to a major exporter, “There are few deals heard closed at higher sides. But,
still we are not sure about the future outlook of the scrap market as few regions
are having enough stock in the mills and few are facing tight supply.”
“Prices
are likely to rise due to winters in the coming month when supply remains tight.
Mills largely replenish more than they require, so there is strong potential
for a surge in prices”, another exporter commented.
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