International Scrap market shows signs of improvement

Indian Market: Offers
remain range bound

Ferrous scrap Offers
to India continues to remain range bound as buyers prefer to wait and watch.
HMS (80:20) last traded at $400-410/MT CFR while Shredded scrap at $415-420/MT
CFR (Nhava Sheva Mumbai). Although offers will certainly go up in coming weeks
looking in line with rise in international scrap prices, it will be interesting
to see whether Indian steel makers absorb such hike in prices.

Turkey: Scrap import
prices lift by $10-20/MT CFR

It is reported that
Turkish mills resumed buying from the Deep Sea scrap market this week and
closed few deals at higher offers.

In a recent deal, a
US origin cargo of 25,000 MT of HMS 1&2 (90:10) and 15,000 MT of plate and
structural scrap were being sold at $420/MT CFR. US suppliers are now offering
HMS 1&2 (80:20) at $415-420/MT CFR.

Further, A UK supplier
sold 20,000 MT of HMS 1&2 (80:20) at $411/MT CFR. In the CIS region, A3
grade scrap is being offered at around $400-405/mt CFR, while mills are seeking
$395-398/mt CFR for the same.

US: Domestic Scrap offers rebound by $50-70/MT

US
domestic scrap markets have shown a significant price hike in ferrous scrap. Prices
moved up by $50-70/MT from the levels seen in early-July. The prices have also
surpassed the June price levels in the US domestic markets.

Further,
US shredded scrap prices reached at $405-410/MT Ex Midwest mills i.e. up by
$65-70/MT from early July. Some trades were also being heard happened at
$425/MT.  HMS was heard being sold at
$350-355/MT Ex Midwest mills.

South East Asia: Scrap offers moved up
by $10-15/MT

In
addition, US scrap suppliers have also raised their offers to East Asia. US
containerized HMS 1&2 (80:20) to Taiwan and China now offered at US$ 400-415/MT.
Offers to Korea for HMS 1&2 (80:20) are hovering at 410-415/MT CFR.

Chinese
mills remain out of the market at current price levels. Mills are not accepting
the price.

According
to a market source, “The Chinese domestic market for finished steel is very bad
now, and people don’t want to buy anything including iron ore and scrap.”