Global scrap offers continue to increase in seaborne market owing to high demand and tight supply, which is a result of sudden rise in Chinese steel prices.
Chinese steel prices jumped sharply this week on hopes of government attempt to boost infrastructural demand. Several small mills in China are defaulting deliveries, which have forced steel manufacturers in other parts of the country to switch to imported scrap.
Turkey
Offers in Turkey, the largest buyer of scrap in the world, have gone up to USD 210-215/MT, CFR Turkey for HMS 80:20 from US and Europe. Sources report that it was quite evident that scrap prices have to rise as Chinese billet offers are not affordable now.
India/Pakistan/Bangladesh
Scrap offers to South Asian countries have also increased. Shredded scrap offers from Europe/US are assessed at around USD 225/MT, CFR Nhava Sheva (India), USD 230/MT, CFR Port Qasim (Pakistan) and USD 225-230/MT, CFR Chittagong (Bangladesh).
Experts believe that ship breaking activities will pick up in these region owing to expensive scrap. These countries contribute over 70% of world’s ship breaking.
Taiwan
Scrap offers to Taiwan have also increased this week due to higher billet offers from Chinese suppliers. HMS 80:20 scrap from US is heard to have offered at USD 175/MT, CFR Taiwan.
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