Global scrap prices are likely to maintain on higher side. Prices may further move up by USD 5-10/MT later this month. Global buyers are cautious as not everybody is willing to purchase material at such higher price levels.
Global scrap offers for HMS (80:20) in Turkey (the largest buyer) remained at USD 287/MT, CFR Turkey last week and it has been moved up sharply to USD 298/MT, CFR Turkey as on 07 Mar’17.
Prime reason behind surge in scrap prices are strong prices in US market as balance between demand and supply in the domestic market likely to remain stable and the increase in freight charges will lead to high export costs.
In addition, prices in Japanese market are also booming heights. A local scrap Indenter got closed with a price increase of 1,500 JPY (USD 13.16/MT), which will hike export prices also.
The domestic market in China continues to stay strong. Alongside, limited supply of billets from China has made billet importers to look for other scrap alternatives.
In talks with a Bangladesh indenter “Current offers for shredded scrap is hovering in the range of USD 320-325/MT, CFR Bangladesh; although, buyers are not willing to take position at such price level.
Shredded scrap prices in India have also moved up by USD 10/MT till last week. Currently, import prices are witnessed at USD 305/MT, CFR India. On similar lines, shredded scrap prices in Pakistan are currently seen at USD 310/MT, CFR Pakistan which was lastly seen at the level of USD 305/MT, Pakistan.
According to the trends prevailing in the market, the prices would still continue to be bullish as the material availability would be limited on global ground.
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