Containerized Scrap offers to Indian market fell by USD 5/MT this week due to falling steel prices in domestic market and depreciating Indian currency. Current offers for HMS 80:20 from Europe are assessed at USD 270/MT and Shredded at around USD 290/MT CIF Mumbai. HMS 1&2 offers from Middle East also fell to USD 295/MT CIF India.
Indian Billet prices have fallen upto INR 1,500/MT (W-o-W) with weak Indian currency. Though the Indian currency this week is back to the level from where it started i.e. 62.83/USD, it was little volatile during the last week, touching lowest at 63.09/USD.
Scrap suppliers reported that the buyers were quite reluctant after experiencing fall in steel prices as well as sudden drop in currency.
An importer justified the downfall saying, “Global steel offers are at lower ranges right now, and comparatively India (and Bangladesh, Pakistan as well) is still buying at a higher price, which makes it the feasible destination to dump (sell) the material. Hence, leading to over supply and price correction.”
Imported Scrap, as on 16 Mar’15
| Grade | Origin | USD/MT, CIF India |
W-o-W |
| HMS 1&2 | Middle East | 295 | -3 |
| Europe | 270 | -3 | |
| HMS 1 | South Africa | 275-280 | -8 |
| Middle East | 305 | -2 | |
| Blue Steel | Middle East | 305 | -3 |
| Shredded | US/Europe | 290 | -2 |
Source: SteelMint Research
Sharp fall in South African currency (ZAR) in past 15 days has led to a noticeable fall in Scrap offers. HMS 1 offers last week witnessed a sharp fall of USD 10/MT. Currently offered at USD 275/MT, CIF India.
Low demand from Pakistan and Bangladesh based Mill
Resistance in Scrap buying from Pakistan & Bangladesh based steel mills last week has built pressure on exporters to sell their cargoes to Indians at a discounted price. On one hand, Bangladesh buyers are preferring cheaper Billets over Scrap due to electricity issues in the country, while on the other Pakistan mills imported enough of Scrap last month.
Indian domestic Billet & Scrap prices, as on 16 Mar’15
| Delivery terms | HMS Scrap | W-o-W | MS Billet | W-o-W |
| Ex- Mumbai | 21,250 | -500 | 28,100 | -600 |
| Ex- Chennai | 20,050 | -500 | 28,400 | -600 |
| Ex- Mandi | 22,300 | -800 | 30,300 | -1,000 |
| Ex- Raipur | 21,350 | -450 | 26,500 | -1,250 |
| Ex- Durgapur | 23,550 | +550 | 27,700 | -500 |
Prices in INR/MT
Source: SteelMint Research
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