Imported Scrap Offers to India rise on strong Global Demand

Containerized scrap offers to India inched up on strong demand in global market and appreciating currency in Europe & Brazil.

Indian market noticed higher offers from global scrap suppliers over strong demand in global market. Current offers for HMS 80:20 from Europe were assessed at USD 280-285/MT , Shredded ISRI 211 grade at USD 300-305/MT on CIF India basis.

Whereas, offers from South Africa for HMS 90:10 (25 MT container loading) were assessed at USD 285/MT and HMS (80:20) from Middle East at USD 295-300/MT CIF India.

Japanese Shredded Busheling scrap ISRI 207 grade offers were assessed in the range of USD 300-305/MT CIF India for June shipments.

Global exporters highlighted that offers have gone up in line with rising prices in Turkey, which is the largest importer of Ferrous scrap in the world. Here, trades for bulk HMS 80:20 have been recorded at USD 275-280/MT CIF Turkey levels.

Scrap exporters also mentioned strong currency as a major factor for rise in Scrap offers in global market. For instance, Euro has appreciated upto 15% in last 2-3 months against USD, Brazilian Real has appreciated about 10% in last one month, whereas South African  Rand by 5% in last one month.

Limited Trade in Indian Market

Indian buyers have been selective and are not making bulk purchases due to falling domestic billet prices, which hit a 4 year low.

“Although offers have gone up, but buying interest is very limited in Indian market. With falling Billet & DRI prices in domestic market, coupled with weak Indian Rupee, buyers are not very keen on taking positions.” said a Scrap importer based in Mumbai.

Also suppliers are not very comfortable with new Pre-Shipment Inspection Policy, which is complicated and adds cost to exports.

“HMS 80:20 offers from Europe were heard at USD 280-285/MT levels CIF India, whereas buying interest was seen at USD 275/MT levels”, he further added.

MRAI seeks extention from Government to adopt new PSIC norms

Metal Recycling Association of India (MRAI) has sought 3-4 months’ time from government of India to adopt new pre-shipment inspection norms , which have been imposed under new Foreign Trade Policy (2015-2020) w.e.f 1 Apr’15. Some clarity is expected to come this week.

Global Scrap Offers (CIF India) as on 30 Apr’15

Source: SteelMint Research