India
Market: No hope for Indian importers despite lower offers
Indian importers continued to remain sideways
in the market as weakening Rupee in exchange market has hit hard to them.
Offers came down to US$ 445-450 for HMS 1&2 (80:20), while Shredded
material offered at US$ 465-470/MT CFR Nhava Sheva Mumbai.
Another correction of US$ 10-15/MT might help
importers to take fresh positions in the market.
Domestic Ferrous Scrap prices have already
moved up by Rs 1,000-1,500/MT this week. Scrap market will pick up further in
the coming weeks as fewer imports will make the supply short in the local
market and push the local prices up. Buyers are eyeing on restocking the
material.
In addition, Indian Sponge Iron prices are also
likely to remain firm or move up in case demand improves.
US & Europe Market: Offers may lose another US$ 10-20/MT
Export prices for Ferrous Scrap have come
down in the USA in the last week, while domestic prices remain unchanged.
American HMS 1&2 (80:20) is now quoted at
$410-415/MT FOB East Coast, shredded scrap at 415-420/MT FOB and P&S
material at $420-425/MT FOB.
Scrap quotations are stable in the US home
market. Steel producers book local HMS 1 at US$ 395-405/MT and HMS 2 at US$ 325-335/MT,
delivered. Market players think that local buyers are taking advantage of the unfavorable
conditions in foreign markets, as they can cut purchase prices as early as at
the beginning of June.
The downward price trend is expected to
accelerate in the USA. Domestic and export quotations will lose around US$ 20/MT
and US$ 10/MT respectively in late May and early June.
Turkey
Market: Offers down further by upto US$ 10/MT this week
Currently, the market conditions are unfavorable
for US Ferrous Scrap suppliers. They are bound to reduce their offers for
Turkish steelmakers who do not want to import scrap at the current prices.
Besides, the competition with European and
CIS suppliers is getting worse as they easily reduce their offers on the weaker
national currencies against the US dollar. Contrary to the US domestic market,
scrap demand is still very weak in Europe and the Azov-Black Sea countries, so
traders have to accept the levels proposed by Turkish customers.
As a result, US exporters have had to lower
prices by US$ 10/MT. HMS 1&2 (80:20) is offered to Turkey at US$ 435-440/MT
CFR, Shredded Scrap at US$ 440-445/MT CFR and P&S material at US$ 445-450/MT
CFR. Nevertheless, such prices have not yet found response among Turkish
buyers, as they are ready to resume imports from the USA only in case of at
least US$ 5/MT additional discounts.
Japan Market: Tokyo Steel cuts Scrap purchase Prices further
by over $6/MT
Tokyo Steel
Manufacturing Co, Japan's
largest electric steelmaker, has cut the scrap purchase prices further by over US$6/MT (JPY
500/MT) at its Tahara and Okayama plants, effective from May 18. the co's purchase prices of local ferrous
scrap remain unchanged this time at its rest 3 works including Takamatsu steel
center.
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