Imported scrap offers to Indian market move up on global demand. Shredded scrap offers are assessed at USD 290-295/MT CFR India, against a price level of USD 280-285/MT CFR last week.
Where as HMS offers from Middle East are assessed at USD 265-270 /MT CFR and USD 260-265/MT CFR from Europe.
However limited trade activities have been reported at higher levels. Market participants mention, ” Very limited transactions are taking place at higher levels, mostly by special steel or alloy steel makers.”
Factors that are supporting global scrap prices are
1. Turkey Buying: Strong buying from Turkey, which is the largest buyer of scrap in the world. Turkey imports about 20 MnT scrap annually, which is 45% of total seaborne trade.
Scrap prices in Turkey have moved up from USD 258/MT to USD 272/MT in last couple of weeks. Notably, Turkey is the largest importer of scrap in the world.
2. Chinese Steel Futures: Strong steel futures in China are supporting scrap prices in global market. Buyers are preferring scrap over imported billets. Chinese billet offers are at USD 420-425/MT FOB China, which was at USD 400-405/MT FOB in early February.
Markets in Pakistan and Bangladesh
Scrap prices in Pakistan and Bangladesh have increased in line with global prices. Current offers for Shredded scrap are assessed at USD 300-310/MT CFR Chittagong (Bangladesh) and USD 290-295/MT CFR Pakistan.
Global Imported Scrap Offers in Week-8
| Particular | Size | Prices | 1W | 1M |
| CNF India | HMS(80:20), Europe | 255 | 243.33 | 265 |
| HMS-1, Middle East | 255 | 252.67 | 267.5 | |
| HMS-1&2, S.Africa | 255 | 238.67 | 265 | |
| Shredded, Europe | 280 | 265 | 292.5 | |
| Shredded, US | 280 | 265 | 295.5 | |
| CNF Taiwan | HMS(80:20), US | 245 | 241 | 252 |
| CNF Turkey | HMS(80:20), US | 272 | 245.67 | 285 |
| CNF Bangladesh | Shredded, Australia/Europe | 295 | 278 | 303.5 |
| HMS 80:20, Australia/Europe | 272 | 259 | 284 | |
| CNF Pakistan | Shredded, US/Europe | 280 | 265.67 | 292.5 |
Source: SteelMint Research
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