In
India, Offers for ferrous scrap increased by US$ 10-20/MT since November.
Limited supply from the export countries ferrous scrap market strong during the
month. Trading activities in the global scrap market gained some momentum in
December as steel mills started stockpiling ahead of Christmas and New Year
holidays. Domestic scrap prices in India also moved up by Rs 500-1500/MT on
short supply of the commodity. Market participants expect prices to remain firm
in January as supply of scrap continues to be low and the imported cargoes will
also reach with higher prices in the coming month.
In
China, average provincial quotations moved up for ferrous scrap. Domestic scrap
traders are forecasting transaction values to stabilize during the “Chinese New Year Festival”. Leading mills are planning to either
lower plant utilization rates or carry out planned maintenance work. Weather
conditions are also now not favorable in the Northern provinces.
In
Japan, the price growth was instigated by Tokyo Steel Manufacturing. The
steelmaker continuously raised its HMS#2 buying prices at all subsidiaries.
Selling figures now back at October level, fuelled by tight domestic supply,
the cost of US material and a need to replenish depleted stocks.
In
Russia, transaction values for A3 graded material in the central and southern
federal districts edged higher. Offers were stable in the Urals. Price
sentiment was unsettled by the recent depreciation in the ruble and improved
overseas sales volumes. Dealers are forecasting that selling figures will
stabilize in early 2012.
In
US, purchasing prices increased sharply. The supply of scrap tightened,
following a rebound in East Coast export trade. Bullish mid-west and north-east
dealers are forecasting higher selling figures in January. Unfavorable winter
conditions have already begun to disrupt collection rates and restrict the flow
of material to the yards.
Turkish
mills resumed trading. Local dealers are forecasting import offers to soften
once winter reserve targets are realized. They contend that domestic demand for
finished steel is insufficient to support the recent ferrous scrap trading
volumes. In contrast, bullish US exporters predict import offers to surge
higher in January.
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