Falling Scrap prices in the global market has drag down the offers to USD 350/MT CFR India levels. Imported offers from Europe continue to correct further on the backdrop of poor sentiment in finished steel market.
Lower buying of Scrap in Turkey has flooded Indian market with competitive offers from Europe. Scrap offers in India have corrected by USD 15-20/MT within last two weeks. Meanwhile, Scrap offers in Turkey have fallen by USD 20/MT during the same period.
Currently, HMS 1&2 from Europe are offered at USD 348-350/MT CFR Nhava Sheva. Some buying interest is seen from mill owners here as domestic Sponge prices haven’t corrected much.
Market participants believe that demand for Scrap will slowly pick up after Diwali as production kick starts. Recently, a consignment of Shredded Scrap from Europe was settled at USD 371/MT CIF Pipavav port (Gujarat) on 30 days delivery condition.
Similarly, imported offers in Chennai have also corrected but no revival is seen for demand. While, talking to SteelMint, an importer in Chennai said,
“Although, offers have corrected significantly, buying interest is not quite encouraging. Traders are reluctant to take bookings since their previous inventory has not been disposed off till now. Moreover, higher volatility in prices has also prevented some traders to take any position.”
Another importer who recently imported a consignment in Chennai said,
“We have got few bookings at USD 355/MT for HMS 1&2. Whereas, Turnings Scrap is settled between USD 335-338/MT. There has been selective buying from mills and it will still take some time to spring back the demand to previous levels.”
Import of Ferrous Scrap stood at around 62,000 MT between 1 &8th Oct, 2014. Industry experts believe that if Sponge iron prices continue to trade at current levels, there is a possibility that Scrap demand may pick up gradually.
|
Imported Scrap Offers CFR Nhava Sheva |
||
|
Origin |
Grade |
Offers in USD/MT |
|
Europe |
Turning |
330 |
|
HMS 1&2 |
348-350 |
|
|
Shredded |
365 |
|
|
Middle East |
HMS 1&2 |
360-362 |
|
HMS 1 |
368-370 |
|
|
S.Africa |
HMS 1&2 |
350 |
|
Imported Scrap Offers CFR Chennai |
||
|
Origin |
Grade |
Offers in USD/MT |
|
Europe |
Turning |
335-338 |
|
HMS 1&2 |
357-360 |
|
|
HMS 1 |
363-365 |
|
|
Shredded |
370 |
|
Indian Ferrous Scrap and Mill Scale Trade Meet, Hyatt, Chennai, 21-22 Nov
Join us and explore opportunities at one of India’s largest trade meet on Ferrous Scrap and Mill scale to be held in Chennai on 21-22 Nov, 2014 at Hotel Hyatt Regency. This summit is expected to be attended by over 200 delegates from 100 companies across the globe.
Meet the following People at One Place
| § S.M. Kothari, MD, Kamachi Group | § Purshottam Parolia, MD, Nihon Ispat |
| § Sanjay Tulsyan, MD, Tulsyan NEC | § Shravan Agrawal, Director, Guardian |
| § Gautam Reddy, CEO, Viki Industries | § Abhijeet Mahanta, India Director, EMR Group |
| § Anurag Agarwal, Director, MS Agarwal Foundries | § Hitesh Agarwal, Purchase, JSL |
| § Raj Vaidhy, Director, Indicaa Group | § Md. Imtiaz Chowdhary, Supply Chain, Bangladesh Steel Rolling Mill |
| § Sanjay Goel, MD, RKSK (Rama Group) | § VR Sharma, CEO, Abul Khair Group |
| § Piyush Agrawal, Purchase, Bagadiya Brothers | § Atsushi Koga, DGM Energy & Mineral Resources Sojitz Corp, Japan |
| § Nikunj Agrawal, AGM RM, Vandana Global & many others |
Leave a Reply