Imported containerized Scrap offers to Indian market remain unchanged at USD 370/MT CFR India for HMS 1&2 from Europe and Middle East. However, demand has been weak owing to cheaper availability of Pig iron in the domestic market.
Current offers for Pig iron in the domestic market are hovering in the range of INR 22,500-24,500/MT (USD 372-405/MT) ex-plant. Whereas, imported Shredded Scrap, which is equivalent to Pig iron in terms of yield, is being offered in the range of USD 390-395/MT CFR with an additional import duty of 2.5%.
“Price difference between Pig iron & imported Scrap has widened with Scrap being expensive than Pig iron. Import of Scrap is not viable at the moment. Either Scrap offers have to come down or Indian currency has to appreciate to make import viable,” said an induction furnace owner based in eastern region of India.
In similar lines, Scrap import in western & southern region of India is quite low on the grounds of low production and financial problems.
Market traders mentioned that offers are hovering in the range of USD 390-395/MT CFR Chennai port for Shredded Scrap and around USD 370-375/MT for HMS 1&2, but hardly any buying interest has seen. Traders also urged that people are expecting correction of USD 5-10/MT for trades to take place.
A trader reported that good quality turning & boring is being offered at around USD 345-350/MT CFR Chennai, but buying interest is noticed at USD 335-340/MT.
India is the world’s 3rd largest importer of ferrous Scrap after Turkey & South Korea. India has imported roughly 2 MnT during April-August, 2014.
Falling Iron Ore Prices to put Pressure on Scrap in Global Market
Spot Iron ore prices, which have slumped to 5-year low of USD 79-80/MT CFR China, will put pressure on Scrap prices in the global market. Industry experts believe that falling Iron ore and steel prices in China will force manufacturers to offer discount in export market.
Saturday, 22 November 2014
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