Offers from Middle East soften; Europe still stands undaunted with strong local demands.
Imported scrap to India from Middle East witnessed a fall of USD 5-10/MT in a week’s time. HMS 1&2 was heard to be offered at USD 260-265/MT, HMS-1 at USD 275/MT and Blue steel at USD 300/MT, CFR India.
Whereas, offers from Europe remain unaffected at USD 270-272/MT for HMS 80:20 and USD 295/MT for shredded, CFR India, owing to strong scrap demand in local markets of Europe.
Similarly, domestic offers in US rose by USD 10/MT, last week, which resulted in an uptick in its global offers. Currently US shredded to India is not heard below USD 300/MT, CFR India, which is not at all viable to Indian manufacturers.
On the other hand, South African HMS (25 tonne loading) was heard to have sold at USD 275/MT, CIF Nhava Sheva to a steel manufacturer based in Mumbai, India.
Domestic Affairs
Fall in sponge & billet prices by INR 200-400/MT W-o-W in major markets, resisted manufacturers to import scrap.
A scrap importer shared, “There is no room for imported scrap in Indian market. Falling sponge & Pig iron have gained the complete attention of billet manufacturers and compelled them to take buying position. Rest of the demand is fulfilled by the available domestic scrap.”
Global Scrap Offers as on 9 Jun’15, on CFR India basis
| Grade | Origin | Offers in USD/MT | W-o-W Change |
| HMS 80:20 | Europe | 270-272 | – 4 |
| HMS 1&2 | Middle East | 260-265 | – 7-10 |
| HMS 1 | Middle East | 275 | – 10 |
| South Africa | 275 | + 5 | |
| Shredded | Europe | 295 | – 5 |
| US | 300 | + 5 | |
| Japan | 300 | – 5 |
Source: SteelMint Research
Leave a Reply