The New Year has begun on a negative note for scrap metal
prices in United States, Turkey while sentiments in the Indian imported ferrous scrap market remained weak due to higher import prices. Following the were the market highlights in January:
Turkey Market
The import prices in Turkey were
markedly lower in January 2012 at $459/ton compared to $501.40/t recorded in
January 2011 for Heavy Metal Scrap (HMS).
US Market
In the US market, prime scrap prices did not rise at the same
rate as obsolete scrap through January, which helped put downside pressure on
obsolete shredded prices.
It later emerged that buyers had come into the market early
and had taken cargoes at the end of December, alleviating the need to purchase
large tonnages in January. Furthermore, it appeared that some material was
being shipped from Europe to the US, increasing scrap availability.
India Market
India scrap import prices rose on an average 2.9% in January
compared to gains of 6.9% in November, December 2011 due to weakening of the
Rupee. Rupee has gained 9% in January which has raised the bids from India
buyers for coil products, as domestic prices rise in line with a stronger
currency.
However, local prices for ferrous scrap in India remained firm on expensive imported material and acute shortage of the domestic product.
With scrap prices in the major markets of Turkey, Europe and
the US falling after a period of clement weather, buyers may be looking to take
advantage of the stronger Indian currency and start taking positions.
Leave a Reply