India: Imported Scrap Offers upsurges from Europe

Imported Scrap offers from European suppliers have gone upto USD 8-10/MT on anticipation of GRI (General Rate Increase) on freight of container transportation from Europe to Asian countries to be implemented in the month of May’14 according to trade sources.

GRI is increase in freight rates of containers, which is largely due to demand-supply and oil rate in global market. According to trade sources, USD 200 per container of 20ft will be charged extra. 

Current offers are hovering at USD 385-390/MT CFR Mumbai against USD 380-385/MT CFR last week for HMS 1&2 and USD 405-408/MT CFR Mumbai for Shredded Scrap. However, there are not many offers in the market from Europe as their domestic demand is quite strong.

Some importers claimed to have offers from Poland for HMS 1&2 at USD 385/MT and USD 400/MT CFR Chennai for HMS.

Indian importers mentioned that there are no offers from US as domestic prices settlement will take place in first week of next month, which will set the direction for Scarp exports.

Offers from Middle East are hovering at USD 385-395/MT CFR Nava Sheva (based on quality & delivery).

Current Offers are: 

Indian Sponge Manufacturers hold Offers

In Indian domestic market, steel mills are waiting for the Supreme Court’s crucial hearing on Iron ore mines running under deemed extension. Anything negative will hurt Iron ore supply in Indian domestic market, in turn will build pressure on supply of Sponge iron.

Current prices of Sponge iron (C-DRI) in domestic market are stable at USD 340-360/MT (Ex-Works).

India is the largest Sponge iron producer and world’s 3^rd largest Scarp importer. India’s total Sponge iron production stood at around 23-24 MnT in FY14, whereas Scrap imports stood at around 4.5 MnT.