Imported scrap offers have moved down by USD 2-3/MT due to increased supply from US and weak global buying. Indian buyers are also cautious to take position, viewing the weakness and volatility in Indian steel market.
Looking at falling imported scrap market, buyers are cautious to take buying decision at current levels, SteelMint learned from Indian participants. Imported scrap offers to India reported to fall marginally by USD 2-3/MT.
HMS from Europe is heard at an average price of USD 220-222/MT, CFR India. Whereas, offers from Australia are heard at a premium of USD 223-225/MT, CFR India. Shredded containerized scrap (US origin) offers are assessed at USD 230-232/MT, CFR India. UK/Europe origin material’s deal is heard at USD 232/M T, CFR West Coast and USD 235/MT, CFR South Coast.
An importer based in Mumbai said, “We are cautious to take buying position at current level as we expect prices to soften further. Moreover, Indian finished steel demand is also very weak.”
While, another indenter based in Mumbai shared that UK HMS 80:20 are evaluated at USD 222-224/MT, CFR India. Shredded Scrap is available at USD 232-235/MT.
Middle East price are assessed at USD 230-232/MT, CFR India for HMS (25 tonnes loading) and USD 220/MT for HMS (23 tonnes loading).
In the meantime, offers for HMS 80:20 in Turkey have also moved down by USD 2/MT to around USD 209/MT, CFR Turkey from the USA. The US market also reported weak sentiments due to increased supply and weak demand. It is heard from sources that the US scrap offers may fall further during this month.
Global imported ferrous scrap offers in week 40
| Particular | Size | Prices | 1W | 1M | Remark |
| CNF India | HMS(80:20), Europe | 222 | 220 | 225 | Buyers are cautious over falling international scrap prices and volatility in Indian steel market. |
| HMS-1, Middle East | 230 | 228 | 222 | ||
| HMS-1&2, S.Africa | 220 | 222 | 220 | ||
| Shredded, Europe | 232 | 235 | 240 | ||
| Shredded, US | 230 | 235 | 240 | ||
| CNF Taiwan | HMS(80:20), US | 194 | 196.67 | 213 | Trade activity expected to regain from 15 Oct’16. |
| CNF Turkey | HMS(80:20), US | 209 | 211 | 223 | Limited buying over increased supply from the US. |
| CNF Bangladesh | Shredded, Australia/Europe | 2380-240 | 243 | 247 | Major buyers will resume buying post next week. |
| HMS 80:20, Australia/Europe | 220-222 | 225 | 235 | ||
| CNF Pakistan | Shredded, US/Europe | 232 | 230.67 | 237.5 | Buying interest picking up at this level. |
Offers in USD/MT
Source: SteelMint Research
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