India:
Importers will fail to find the suppliers with offers below $370-80/MT CFR
Falling Rupee continues to hurt the Indian
importers. Importers now are expecting a new $370/MT mark to take fresh
positions.
“We are totally out of the market. Who will
supply the material at below $370 as falling Rupee in the currency market is
prompting us to stay out of the market. No matters what offers are coming in
the market, we just have to sit idle until the Rupee held some strength”, said
an importer based in Mumbai.
“We have the yard in Dubai with around 4,
50,000 MT of scrap. But, we are not able to supply material at below 420/MT CFR
Mumbai at the moment. Moreover, we can't expect importers to book the material
at such prices” a Scrap yard owner in Dubai said.
Turkey:
Offers would stabilize in line with recent bulk orders
It is reported that Turkish steelmakers
booked 160,000 MT of scrap from deep-sea suppliers on Wednesday and Thursday at
$ 380/MT CFR basis. Mills are looking to cover the shortages in the stockpile.
The above deals include 12,000MT of P&S
scrap, 18,000MT of HMS 1 and 20,000MT of shredded scrap with an average price
of $380/MT CFR Turkey. Another mill in Turkey has booked a mixed cargo
including 10,000MT of HMS 1&2 (80:20) at $382/MT CFR 20,000MT of shredded
scrap at $387/MT CFR Turkey.
US:
Domestic market sentiments down but offers stable
US domestic market is stable. Having lowered
purchase prices significantly in mid-June, local steelmakers focus on finished
steel sales now.
As foreign demand is getting improve,
domestic market outlook becomes more optimistic. In mid-June, most traders agreed
that steadily poor demand from Turkey would lead to a decline in local scrap
prices by $20-30/t in July, but now prices are expected at least to stabilize with
the start of bulk orders.
Turkish mills have indicated that they need
scrap for July-August delivery, thus suppliers have a strong chance to destock
and restore demand-supply balance in the US local market.
Shredded scrap delivered Midwest mill held
steady at $375-378/MT this week.
In addition, 2 US East Coast cargoes were
also being heard booked. One includes the 40,000MT of HMS 1&2 (80:20) at
$383/MT CFR Turkey (Marmara port). Other one includes HMS 1&2 (80:20) at
$383/MT CFR Turkey (bought from an Iskenderun based manufacturer).
A supplier based in US commented, “Demand for
domestic rebar is improving. So, on the back of that, scrap demand is getting
strong. Buyers are getting more interested for the material in order to maintain
inventories. It won't be surprising if the market gets an improvement.”
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