Imported scrap offers to Indian market moved up marginally due to rise in Turkish buying. However, demand continues to remain weak.
Current offers for shredded scrap (ISRI211) from US/Europe are assessed in the range of USD 222-225/MT, CFR Nhava Sheva, which were USD 220-223/MT, CFR last week.
Offers for HMS 1&2 from Europe are assessed at USD 205-210/MT, South Africa at USD 215/MT and Middle East at USD 210-215/MT on CFR India basis.
Offers for HMS 1 from Middle East are around USD 215/MT and South Africa are USD 220/MT on CFR India basis.
Participants report that demand continues to remain weak owing to consistently falling prices in domestic market. Indian buyers are relying on domestic scrap and sponge iron. It is to be noted that scrap imports to India is expected to fall by 15-20% in July’16.
Buying improves in Pakistan and Bangladesh
Market participants report that buying activities have improved in Pakistan and Bangladesh post Ramdan festival. Current offers for shredded scrap is gauged in the range of USD 230-235/MT, CFR Chittagong and USD 230/MT, CFR Port Qasim.
HMS 1&2 offers are in the range of USD 215-220/MT, CFR Chittagong and CFR Pakistan. Participants also mention that buying activities have improved in Pakistan and Bangladesh due to higher offers for ship breaking, which moved up by USD 10/MT last week.
US scrap export offers may fall
US scrap export offers are expected to fall in coming months owing to weak demand from domestic market. Several steel mills in US have heard to cut down their purchase price for domestic scrap. Current offers for shredded scrap from US are around USD 210-215/MT FOB US East Coast. People are expecting a price cut of USD 10-15/MT next month.
Global imported ferrous scrap offers in week 32
| Particular | Size | Prices | 1W | 1M | Remark |
| CNF India | HMS(80:20), Europe | 205-207 | 205 | 210 | Trade activities remain low. High disparity between sellers offers and buyers expectation. Smelters prefer domestic scrap and sponge iron. Imports to fall 15-20% in Jul’16. |
| HMS-1, Middle East | 212-215 | 213 | 210 | ||
| HMS-1&2, S.Africa | 210-215 | 212 | 210 | ||
| Shredded, Europe | 223-225 | 220 | 220 | ||
| Shredded, US | 223-225 | 220 | 220 | ||
| CNF Taiwan | HMS(80:20), US | 200-205 | 200 | 200 | Prices up on improved buying from Turkey. |
| CNF Turkey | HMS(80:20), US | 225-229 | 223.5 | 215 | Buying sentiments improve post Ramdan festival and irregular supplies of Billet from Chinese suppliers. |
| CNF Bangladesh | Shredded, Australia/Europe | 230-235 | 230 | NA | Buying activities pick up post festival; prices firm. |
| HMS 80:20, Australia/Europe | 215-220 | 219 | NA | ||
| CNF Pakistan | Shredded, US/Europe | 225-230 | NA | NA | Buying improves post festival. |
Offers in USD/MT
Source: SteelMint Research
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