Global offers for scrap to India rallied up by USD 5-10/MT in a weeks time.
Imported scrap offers to Indian market surged up this week owing to higher prices in global market and recently imposed MIP (Minimum Import Price) by Indian government.
1.Offers to Turkey Surge: Improvement seen in Chinese billet offers, post Lunar new year has bought confidence in global steel market and shifted the interest of global manufacturers back again to scrap over billets . Turkey has started booking scrap aggressively. Turkey is the largest importer of scrap in the world.
Global scrap offers from USA/Europe to Turkey have rallied by USD 10-15/MT in last one week. Offers to Turkey are currently heard around USD 195-200/MT for HMS 80:20 CFR Turkey.
2. MIP Effect: Ever since the government had announced Minimum import Price (MIP) to safeguard steel industry, domestic steel prices in India have started rallying high. Indian mills are anticipating further price rise and are ready to stock material at any given market prices.
Scrap Offers to India
Shredded offers from Europe/US to India had increase to USD 215-217/MT, CFR while HMS 80:20 is offered at around USD 200/MT (+/- USD 5), CFR India basis.
HMS (25 tonnes loading) offer from Middle East are at USD 210-215/MT, CFR India.
Scrap Prices in Global Market Rise
Rising billet export offers from Chinese mills have lent support to seaborne scrap prices, which have gone up almost every part of the world.
Scrap prices have also gone up in South Korea, which is second largest importer, amid high offers from Japanese suppliers. Due to strong Yen against Dollar, suppliers have raised their offers. Current offers for Shredded Busheling from Japan are assessed at USD 180-185/Mt FOB Japan
Similar situation persists in Taiwan, Bangladesh and Pakistan. Higher billet offers from Chinese and Russian suppliers have made scrap offers go up by USD 5-10/MT.
Containerized HMS 80:20 offers from US to Taiwan are at USD 170 /MT CFR Taiwan. Shredded scrap offers from UK/Europe/US to Pakistan is around USD 210-215/MT CFR Port Qasim (Pakistan) and USD 213-215/MT CFR Chittagong (Bangladesh).
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