Fall in steel prices since the beginning of 2016 has made Indian importers little cautious about booking scrap.
Imported scrap offers to India continued to remain stable for the current week. Offers for HMS from Europe are assessed at USD 185-195/MT, CFR India and shredded at USD 205-210/MT, CFR India.
Similarly, offers from Middle East have also remained at the same level of USD 210/MT (for HMS 25 tonnes loading) and USD 200/MT (for HMS 23 tonnes loading), witnessing a fall in inquiries.
While, not much of offers were heard from South Africa owing to the ongoing permits and licensing issues in the country.
Devaluating currency still a concern
INR has devalued above 67 against USD in last one week and touched 68 per USD level today morning (20 Jan’16). This rapid depreciation in Indian currency is adding to the resistance in Indian scrap importers.
Meanwhile, sharp devaluation in GBP (British Pound) during last 20 days has also emerged as a matter of concern for scrap participants. GBP has depreciated by around 4% during last 20 days against USD; its lowest since 2010.
Devaluation in GBP may create a room for price corrections in scrap offers. But, severe weather condition and short supplies are supporting offers to remain stable.
Global Scrap Offers as on 20 Jan’16
| Particular/Delivery | Size/Grade | Prices in USD/MT | Change |
| CNF INDIA | HMS(80:20), Europe | 185-195 | 0 |
| HMS-1, Middle East | 210 | 0 | |
| HMS-1&2, Middle East | 200 | 0 | |
| HMS-1&2, S.Africa | 200-205 | 0 | |
| Shredded, Europe | 205-210 | 0 | |
| Shredded, US | 205-210 | 0 | |
| CNF TAIWAN | HMS(80:20), US | 150 | 0 |
| CNF TURKEY | HMS(80:20), US | 185 | -7 |
| FOB JAPAN | Busheling Shredded | 178 | 0 |
Source: SteelMint Research
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