Major scrap markets like Turkey, Taiwan are shifting interest from scrap to Chinese billet.
Lower billet offers from Chinese suppliers loom a threat on scrap suppliers across the globe. Large imports of Chinese billets in major scrap markets like Turkey, Taiwan and Korea have brought scrap prices to noticeably low level in a week’s time.
Scrap offers in Turkey, which is the largest importer of scrap in the world, have witnessed a price fall of USD 20/MT fall in 2 weeks time. Turkish mills are preferring Chinese billet at USD 320/MT levels over scrap (HMS 1&2) which is at USD 240/MT CFR Turkey.
Similarly imported offers for scrap in Taiwan witnessed fall of around USD 30/MT in 2 weeks time, and billet here are heard trading at below USD 300/MT levels.
Indian Scrap Market Updates
After Indian government eased PSIC (Pre Shipment Inspection) norms, offers for shredded scrap were heard floating from Europe and US.
European suppliers were heard offering shredded at around USD 270/MT CFR India, but low demand in the market could not create any buying sentiments.
Offers for HMS were not frequently heard in the market, as import of HMS does not come under the provision made by the ministry; it has to be imported only as per PSIC procedures. If any offer exists in market, it won’t be more than USD 240-245/MT CFR India. Similarly, not many offers from Africa and Middle East were heard in the market as ports there do not have facilities mentioned under PSIC norms as well as in the provision.
Recently, two bulk vessels from USA of 21,000 MT and 40,000 MT were seen at Kandla port. The consignment is a combination of HMS 1&2 & shredded and heard to be sold at INR 17,500-18,000/MT, ex-yard.
As an outlook, bearish air in market along with cheap and highly lucrative billet offers from China would pull down global scrap offers to noticeable extents.
Leave a Reply