Ferrous scrap offers at seaborne market follows the suit alike other global steel prices; offers escalate by USD 5-10/MT.
Sudden rise in steel price in China by USD 40-50/MT in a weeks time, post Lunar New Year has completely stirred up the global steel market. Cheaper Chinese billet, which was matter of concerns for global steel producers, has improved to USD 320/MT FoB China (up by USD 50/MT W-o-W). This, in turn has increased the demand for scrap in the global market, resulting to an uptick of around USD 5-10/MT.
Currently, scrap offers for shredded scrap from UK/USA are around USD 225-230/MT, CFR India. However buying interest is still below USD 200/MT levels. HMS 80:20 offers are rarely heard owing to less availability.
HMS scrap (25tonnes loading) from Middle East are offered at around USD 215-220/MT, CFR Nhava Sheva. Domestic steel prices have moved up in line with global prices. Hence, Indian mills are preferring to buy scrap from Middle East to lessen the transit time and maximize the opportunity.
South Asian Market
Pakistan, during these days has emerged as one of the active buyers for scrap in global market. Shredded offers to Pakistan are around USD 225-230/MT CFR Port Qasim. It is heard that buyers are comfortable buying even at USD 230/MT levels looking at short supplies and urgent demand in their market.
Meanwhile, Bangladesh looked reluctant to make purchases at high prices. Shredded offers at Bangladesh are heard at around USD 235-240/MT, CFR Chittagong. Steel mills have got sufficient stock with them, hence they may not be keen to buy scrap at higher prices.
Trade Wise:
- European Shredded scrap offers to India at USD 220-225/MT, CFR Nhava Sheva
- Middle East HMS 1&2 at USD 215-220/MT, CFR Nhava Sheva
- Japanese shredded busheling scrap at USD 235/MT, CFR Nhava Sheva
- Shredded scrap offers to Pakistan at USD 225-230/MT, CFR port Qasim
- HMS 80:20 scrap from US to Turkey at USD 207/MT, CFR
- Indian Sponge iron prices trade high on rising global scrap prices
- Ship breaking offers may increase on rising global steel prices
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