Imported containerised scrap offers to India continue to fall on low buying interest and falling global prices.
Scrap offers to India continue to experience new lows. Recently scrap offers from Europe for HMS 80:20 to India have fallen to USD 220-225/MT and shredded (ISRI 211) to USD 250/MT, CFR India.
According to market participants, though the offers for fresh booking are at USD 220-225/MT for HMS and USD 250/MT for shredded, sale-price of stock piled at ports and material in transit are completely dominated by buyers. It is completely a buyer’s market right now, without any direction and bottom line.
A steel mill in west India confirmed to have offers from Europe for HMS 80:20 at USD 220-225/MT and shredded at USD 250/MT, CFR India. Whereas, offers from Middle East for auto-scrap (22-23 tonne loading) are at USD 210/MT, HMS 1&2 (22-23 tonne loading) are at USD 220/MT and HMS 1 (25 tonne loading) are at USD 230/MT, CFR India.
Also, South African HMS 1&2 (25 tonnes) is being offered at USD 230/MT CFR India. South Africa contributes around 15% of India’s total import.
SteelMint assessed, most of the trades were either distress sales or were made under re-negotiatable prices (high-discounts) and hardly any fresh trade was spotted in past 15 days.
One of the market participants at Kandla shared, “As a perfect example of distress selling, we were even getting offers for shredded at USD 241-242/MT, last Friday, which today has dropped to USD 235-240/MT levels, CFR India.”
As per sources, bulk shipments of scrap at ports like Kandla, Mundra are still not sold. Around 70,000-80,000 MT of bulk scrap is lying at Kandla Port and being heard to be offered at around INR 15,500-16,000/MT, ex-yard (duties, taxes excluded).
Outlook
Market participants are hopeful about buying interests in coming weeks as they believe manufacturers are out of stock and have no option except placing orders. Stability in global price (offers at Turkey) has also brought some confidence in the market.
Global Offers as on 27 Jul’15
| Particular/Delivery | Size/Grade | Prices | Change |
| CNF Mumbai, India | HMS(80:20),Europe | $225 | – 10 |
| HMS-1,Middle East | $230 | – 15 | |
| HMS-1&2,Middle East | $220 | – 15 | |
| HMS-1,S.Africa | $230 | – 10 | |
| Shredded,Europe | $250 | – 8 | |
| Shredded,US | $255 | – 5 | |
| CNF Taiwan | HMS(80:20),US | $170 | – 20 |
| CNF Turkey | HMS(80:20),US | $230 | + 6 |
| FOB Japan | Busheling Shredded,Japan | $235 | – 2 |
| FOB Rotterdam, Europe | HMS(80:20),Europe | $200 | + 7 |
| FOB US East Coast | Shredded,US East Coast | $215 | + 3 |
Source: SteelMint Research
Leave a Reply