India imported scrap buying improved as steel prices have increased in domestic market.
Indian Buyers most Active in Asian Region: Indian buyers are currently most active in entire Asian region as domestic steel prices have moved up sharply.
Rising prices in India is a result of increasing coking coal prices and trade measures imposed by Indian government on steel imports. Coking coal prices have gone up by 97% in a month. On the other hand, imports have dropped by 40% in last 6 months compared to the same period last year.
India produces about 90 MnT crude steel, out of which 50% comes through Blast Furnace (BF) route, which requires coking coal.
This week, domestic steel prices in India have surged by INR 1,000/MT W-o-W that supported imported scrap trade.
Bulk Vessel Booking by Indian Steel Mills: Market players reported that a deal for 3-4 vessels of shredded scrap has concluded at USD 238-245/MT, CFR India of US origin. The vessels are expected to arrive at Kandla and Mundra Ports in the month of Oct-Nov’16.
Middle East Offers Increased by upto USD 10/MT: Offers for shredded scrap of Dubai origin to India were seen at USD 232-235/MT for 25 MT loading and for 23 MT loading at USD 225/MT on CFR basis. Indian buyers reported that trade in Middle East took place at USD 228-230/MT for 25 MT loading and USD 218-220/MT for 23 MT loading.
Scrap Offers – Asian Markets
Shredded scrap offers to Asian markets also noticed a correction. Current offers for shredded scrap (ISRI 211) are assessed at USD 235-240/MT CFR India, USD 225-230/MT CFR Pakistan and USD 240-245/MT CFR Bangladesh. Buyers prefer to wait as they expect prices may correct a bit more.
HMS 1&2 offers were assessed at USD 220-225/MT CFR India, USD 210-220/MT CFR Pakistan, USD 220-225/MT CFR Bangladesh and USD 200/MT CFR Taiwan.
Global Scrap Offers Fall by USD 5-10/MT
Seaborne scrap prices observed a correction of USD 5-10/MT last week on account of falling Chinese billet export offers, which corrected by USD 15-20/MT in last one month.
Recent scrap trades were recorded by Turkish buyers at lower prices. Turkey is eventually the largest importer of ferrous scrap in the world.
Current prices for HMS 1&2 are assessed at USD 200-205/MT CFR Turkey, which was about 210/MT CFR Turkey a week back.
Global Imported Ferrous Scrap Offers in Week 40
| Particular | Size | Prices | 1W | 1M | Remarks |
| CNF India | HMS(80:20), Europe | 223-226 | 225 | 220 | Buying to remain firm as Pig iron prices in domestic market increased by upto INR 3,000/MT |
| HMS-1, Middle East | 230-235 | 220 | 217 | ||
| HMS-1&2, S.Africa | 225-227 | 225 | 220 | ||
| Shredded, Europe | 235-238 | 235 | 230 | ||
| Shredded, US | 235 | 237 | 230 | ||
| CNF Taiwan | HMS(80:20), US | 195 | 198 | 222 | Increased supply of US material led to price correction |
| CNF Turkey | HMS(80:20), US | 200-205 | 206 | 229 | Prices are expected to fall further due to weak buying |
| CNF Bangladesh | Shredded, Australia/Europe | 245-247 | 247 | 245 | Buying remains sluggish |
| HMS 80:20, Australia/Europe | 230-235 | 235 | 235 | ||
| CNF Pakistan | Shredded, US/Europe | 230 | 230 | 235 | Buyers expect prices may fall further |
Offers in USD/MT
Source: SteelMint Research
Leave a Reply