Scrap offers from Europe have came down by USD 5/MT to USD 290-295/MT, CFR India.
Why Scrap Offers in Europe fall by USD 15-20/MT in a day?
Scrap offers in the world’s largest Scrap supplying region, Europe, has fallen sharply by USD 15-20/MT to USD 255-258/MT, FoB Rotterdam in past two days. This is because of less booking from Turkey, which has led to fall in Scrap offers to India as well as across the globe.
Russia, very well using opportunities in adversities (depreciating currency), is offering Scrap & Billet to Turkey at cheaper rates. This has made shift in interest of Turkey from Europe to Russia, pulling down Scrap offers in Europe by USD 15-20/MT.
Currently, Scrap in Turkey (which is the benchmark) is trading in the range of USD 280-285/MT, CFR Turkey Port, depicting price war and low buying interest in the market.
Indian Scenario
As above, Indian Scrap suppliers are also complaining about no buying inquiries in market; floating offers in the range of USD 290-300/MT. On the same note, a renowned Indian importer shared,”We are offering European Scrap, HMS 1&2 at USD 290-295/MT, CFR India. But, still buying interest is lacking.”
While, an importer based in West Coast of India confirmed,“A deal of 2,000 MT HMS 1&2 Scrap is settled at around USD 290-295/MT, CFR Pipavav Port of South African origin. The shipment is expected to reach around mid of Feb’15.”
On the other hand, Middle East suppliers being out of the vogue are continuing to offer HMS 1&2 at USD 300-305/MT and HMS 1 at around USD 315-318/MT, CFR West Coast of India. Out of many, a Dubai based Scrap supplier and yard owner is offering HMS 1 (Fabrication Scrap containing no GI & no CI) at USD 317/MT with 25 MT loading and have sold 4 containers (100 MT) of HMS 1&2 at USD 305/MT, CFR Nhava Sheva. However, a recent deal of HMS 1&2 was heard to have settled at USD 301/MT, CFR Nhava Sheva and HMS 1 at USD 318/MT, CFR Mundra Port.
Indian participants are still hesitant to take position, anticipating fall of another USD 10-15/MT in a month’s time. Buyers are hopeful about Indian Budget and are keeping it a benchmark as a sentiment driver in near future.
Resistance for Scrap in Bangladesh too
After Pakistan, resistance for Scrap purchase is seen in Bangladesh also. Cheaper Billet offers from China & Russia has kept Bangladesh manufacturers in dilemma i.e. whether to buy Billet at USD 380-400/MT or Scrap from Europe at USD 290-300/MT, CFR Bangladesh.
However, few market sources reported a deal of large quantity European HMS 1&2 to have settled at USD 280/MT, CFR Chittagong.
In outlook, surprises in the international market (steep fall in prices) as well domestic policies (upcoming Indian Budget) may drag market for another price correction of upto USD 10-15/MT, CFR India.
Imported Scrap Offers as on 31 Jan’15
| Particular | Origin | Offers | W-o-W | M-o-M |
| HMs 1&2 | Europe | 290-295 | -10 | -20 |
| South Africa | 290-296 | -10 | -20 | |
| Middle East | 300-305 | -5 | -10 | |
| HMS 1 | Middle East | 315-318 | 0 | -15 |
| Shredded | Europe | 305-310 | -10 | -20 |
Prices in USD/MT, CFR Nhava Sheva
Source: SteelMint Research
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