Japanese Scrap Offers Rise to Indian Market Despite No Buying

1. Korean buyers actively buying Japanese scrap
2. Appreciating Japanese Yen

Japanese ferrous scrap offers to Indian market continue to rise this week despite no buying interest. Reason for hike in offers is better realization in Korean market, which remains preferred market for Japanese suppliers.

Current offers for Japanese busheling shredded are in the range of USD 260-270/MT CFR Nhava Sheva, which was USD 250-260/MT CFR Nhava Sheva last week. However, buyers resist to take positions at these levels. Indian buyers mentioned that offers are too high and not feasible at current steel prices. Shredded scrap offers from US/Europe are assessed in the range of USD 235-240/MT, CFR Nhava Sheva but no major deals were heard to be concluded.

India imported about 56,000 MT ferrous scrap from Japan in 2015.

Korean buyers become active

Rise in global billet and scrap prices have made Korean steel makers to buy Japanese scrap actively. Current offers for busheling shredded to Korea are assessed at around USD 210-212/MT FoB Japan, which is equivalent to USD 230-232/MT, CFR Korea (in break bulk).

Appreciating Yen against Dollar

Another reason why Japanese scrap offers have gone up is appreciating Yen, which is fetching lower realization to Japanese exporters. Japanese yen has appreciated from 124/USD to 112/USD in last 1 month.

India imported around 5.6 MnT in 2015; out of which 15% each was contributed by USA and UAE followed by UK (14.5%).

Country wise scrap imports to India in 2015

Source: SteelMint Research