Ferrous Scrap Offers to India Rise by USD 5-10/MT

Imported scrap offers to India have risen on the backdrop of bullish global sentiments.

Ferrous scrap offers to India uptick by USD 5-10/MT. Shredded offers from US/UK were assessed at USD 230-235/MT, CFR India and HMS 80:20 at USD 205-210/MT, CFR India. Indian buying interest for shredded was seen at USD 230-232/MT, CFR levels; decent quantity deals were even heard at these levels.

Whereas, offers from Middle East are within USD 220-225/MT for HMS (25 tonnes loading). Not many offers are heard from Japan and South Africa owing to active participation/buying of far east market and licensing issues respectively.

Far East scrap market, which was inactive from a while, has started buying scrap after sharp rise in Chinese billet prices. The local demand is also said to have improved, resulting in better realization on domestic sale than exports. Another reason learned for shift/fall in interest from billet to scrap was imposition of 23.5% duty on Chinese billet import in Vietnam.

Bulk shipment to India increase

FY16 remained an active year for bulk scrap purchasers in India. About 0.9 MnT of total bulk scrap shipment is recorded till Mar’16. Out of which, 75% is contributed from USA. Currently, three bulk vessels are expected at Chennai port and about half a dozen is expected to arrive at West Coast of India.

Offers in Pakistan and Bangladesh

Pakistan is currently emerging as one of the most active participants in seaborne scrap market. Shredded offers from US/Europe are heard at USD 235-240/MT, CFR Pakistan. Decent volume of trades (25,000-30,000 MT) were also heard at USD 235-238/MT levels.

While shredded offers in Bangladesh is at USD 245/MT, CFR Chittagong. Resistance is seen in buying; buyers are on wait and watch mood.

Global Scrap Offers

Source: SteelMint Research