Global Imported Scrap Prices continues to Rise

Imported scrap prices continue to stay on higher side. Pakistan is aggressively emerging as a strong buyer as some deals have been heard at USD 315-320/MT CFR, Pakistan for Shredded scrap. Global scrap offers for HMS (80:20) in Turkey (the largest buyer) is seen at its 10 month high, above USD 300/MT, CFR Turkey which was lastly seen at such levels in May’16. According to a Scrap Trader based in Pakistan, “there have been bookings at such high prices and the reason being strong domestic steel prices and high demand due to large construction activities.”

Major reason behind strong prices in Turkey due to unavailability of material from US market, since US is engaged in fulfilling domestic demand in spite of exports. In addition, Pakistan’s domestic market demand is high as the local construction work is increasing.

Alongside, prices in Indian market are likely to stay quiet as the offer would not be less than USD 310-315/MT, CFR India; due to limited trading among Indian buyers as other importing countries are ready to pay at better prices.

Price rise in Bangladesh is also seen and it might bounce back strongly from current condition by the end of this month as the inventories in the local mills are down. Presently it is at USD 330/MT, CFR Bangladesh.

By looking at the above trade sentiments, it is seen that global scrap prices continue to be volatile and Trade Volumes to stay low at such high price level.

Global Scrap Prices Week 12

Prices in USD/MT
Source : SteelMint