Imported scrap prices to India have moved up marginally this week but low buying interest from smelters continue. Current offers for shredded (ISRI 211) from Europe and US are assessed at USD 230-235/MT, CFR Nhava Sheva. However, some buying interest is observed at USD 220-225/MT, CFR Nhava Sheva.
Offers for HMS 1&2 (23 tonnes) load from Middle East are assessed at USD 210-215/MT, CFR Nhava Sheva and HMS 1 (25 tonnes) load at USD 220-225/MT, CFR Nhava Sheva. Meanwhile, offers for HMS 1&2 from South Africa are evaluated at USD 215-220/MT, CFR Nhava Sheva.
Turkey resumes buying
Turkey based smelters have resumed their scrap import last week, which has given some hope to scrap suppliers across the world. It is reported that a deal for HMS 1&2 from US has been concluded at USD 235/MT, CFR Turkey and sellers are targeting at USD 240-245/MT, CFR levels this month.
Turkey is the largest buyer of seaborne scrap with annual import of about 20 MnT.
Scrap suppliers prefer Pakistan and Bangladesh over India
Scrap suppliers reported that demand for imported scrap is better in Pakistan and Bangladesh as compared to India. Offers for shredded scrap to Pakistan are around USD 240-245/MT, CFR Port Qasim and to Bangladesh at USD 240-245/MT, CFR Chittagong.
Bangladesh government has imposed a regulatory duty of 20% and a VAT of 15% on imported billet. This has made scrap a viable option for Bangladesh based steel mills. Scrap suppliers are also hopeful that demand will pick up fast post Ramadan festival.
Imported ferrous scrap offers to India during week 25
| Particular | Size | Prices | W-o-W | M-o-M | Remark |
| CNF India | HMS(80:20), Europe | 215-220 | 0 | -17 | Buying interest remains weak. However, suppliers increased their offers on rising buying interest from Turkey, Taiwan and other South Asian countries. |
| HMS-1, Middle East | 220-225 | +5 | -20 | ||
| HMS-1&2, S.Africa | 215-220 | +5 | -15 | ||
| Shredded, Europe | 225-230 | 0 | -45 | ||
| Shredded, US | 225-230 | +5 | -45 | ||
| CNF Taiwan | HMS(80:20), US | 185 | 0 | -50 | Prices rise as Turkey resumed scrap buying. |
| CNF Turkey | HMS(80:20), US | 235-240 | -10 | -65 | Turkey resumed scrap buying and it is expected that prices may rise in coming weeks. |
| CNF Bangladesh | Shredded, Australia/Europe | 230-240 | -15 | NA | Scrap import is likely to improve post union budget, which introduced 20% duty on imported billet. |
| HMS 80:20, Australia/Europe | 215-220 | -10 | NA | ||
| CNF Pakistan | Shredded, US/Europe | 240-245 | +10 | NA |
Pakistan mills resumed buying as they run out of the stock. Demand too may pick up post Ramadan. |
Offers in USD/MT
Source: SteelMint Research
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