Scrap importers/traders looked cautious and hold their buying owing to price corrections in global billet.
Global ferrous scrap market has witnessed a sharp fall of USD 30/MT in scrap prices during a week’s time. US-Europe origin Shredded scrap offers, which were assessed at around USD 295-305/MT CFR a week back, are today offered at around USD 275/MT, CFR India.
Offers for HMS 1&2 (80:20) are assessed at USD 230-240/MT, CFR India.
No Indian importers/traders are ready to book scrap or place any order currently, as they expect further fall in prices in coming days.
Meanwhile, buying activities in the world’s largest scrap consuming/importing nation, Turkey also remain still. Buyers here preferred to wait and watch till the market gets a definite direction.
Imported prices for HMS-grade scrap (containerized) in Taiwan have also slumped by over USD 40-50/MT in the past week. Offers for HMS are currently assessed at USD 235-240/MT, CFR levels.
Sudden collapse in MS billet prices in Chinese steel market had disturbed the prices rhythm in global market. Billet prices in China have fallen by USD 60-70/MT in a week’s time and around USD 90-95/MT since 1st week of May’16. Current offers for Chinese billet are assessed at USD 320/MT, FoB China.
Global Ferrous Scrap Offers as on Week 21
| Particular/Delivery | Size/Grade | Prices in USD/MT | W-o-W Change |
| CNF India | HMS(80:20), Europe | 230-240 | -38 |
| HMS-1, Middle East | 240 | -25 | |
| HMS-1&2, Middle East | 230 | -25 | |
| Shredded, Europe | 270 | -25 | |
| Shredded, US | 270 | -25 | |
| CNF Taiwan | HMS(80:20), US | 235 | -58 |
| CNF Turkey | HMS(80:20), US | 300 | -15 |
| FOB Europe | HMS(80:20) | 272 | -20 |
| FOB US East Coast | Shredded | 300 | -20 |
Source: SteelMint Research
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