Ferrous Scrap from Middle East at USD 382-385/MT CFR India

HMS Scrap offers from Middle East have corrected to USD 384/MT. Shredded Scrap prices from Europe also corrected by USD 3-4/MT.

Imported Scrap offers from Middle East have corrected by USD 4-5/MT as compared to previous week. HMS Scrap offers from Middle East countries are hovering in the range of USD 382-385/MT CFR. It is interesting to note that Shredded Scrap prices from Europe have also seen mild correction of USD 3-4/MT compared with last week; currently trading at USD 400-402/MT CFR India.

Exchange Rate Impact

A volatile exchange rate has impacted trade volumes to certain extent.  The Indian exchange rate swung back to the levels of INR 60/USD thereby affecting the imported Scrap offers. Some market participants believe that market prices may correct further since domestic Scrap prices have cooled off and the current demand is dull in India. But, others hold a contrarian view.

One of the importers based in Mumbai said,“At present, we are getting offers from Kuwait at around USD 382-385/MT. However, we expect the Scrap prices to rise by USD 10-15/MT owing to ongoing crisis in Iraq.”

A recent deal of 250 MT HMS 1&2 was settled at USD 384/MT CIF Mumbai from Dubai.

 Similarly, SteelMint while talking to a Steel re-roller based in Mumbai, who depends on imported Scrap commented,“We haven’t placed any bulk orders for imported Scrap as of now since we are directly purchasing Billet from the market and using it for rolling. The demand is not quite healthy in the finished steel market due to upcoming monsoon.”

It is to be noted that the Billet prices in Mumbai have corrected by around INR 1,200/MT in a month’s time, which makes mills purchasing Billet more feasible than importing Scrap.