India: Imported Scrap Offers Up Despite Low Buying Interest

1. Strong buying from Turkey increases global offers
2. Increasing bulk shipments to India
3. Availability of DRI in domestic market

Imported scrap offers to Indian market has remained high on account of strong buying from Turkey, the world’s largest scrap importer. Offers for shredded scrap from US/Europe region are assessed at USD 280-285/MT, CFR Nhava Sheva, but buying interest is reported at around USD 250/MT, CFR.

Whereas, HMS 80:20 (23 tonnes load) offers from Middle East are assessed at USD 230-235/MT, CFR Nhava Sheva, but buying interest is seen at USD 220-225/MT, CFR. Meanwhile, HMS 80:20 offers from Europe are assessed at USD 255/MT, CFR. However, no deals have been reported at these levels.

Strong buying from Turkey increases global offers

Turkish mills have resumed scrap purchases, post sharp rise in Chinese export prices. Current offers for HMS 80:20 from US have inched up to USD 290-295/MT CFR Turkey, which were USD 230/MT a month’s back.

Sources also reported that strong buying from Pakistan has prompted scrap suppliers to keep their offers high to Indian market. Shredded scrap offers to Pakistan are assessed at USD 280-290/MT, CFR Port Qasim.

Increasing bulk shipments to India

Another reason for low demand from Indian importers are increase in bulk shipments. In 2016 , fifteen vessels were recorded at Indian ports , which has led to increased availability of ready stock at port. Indian import jumped by 26% M-o-M in March owing to rise in bulk shipments.

Availability of DRI in domestic market

Ample availability of sponge iron (DRI) in domestic market is another reason why Indian importers are not keen to take positions at high levels. Indian sponge iron prices are currently hovering at INR 11,000-13,500/MT (in USD 165-203/MT ).

Trade dyanmics

1. Shredded scrap (ISRI) offers to India are assessed at USD 280-285/MT, CFR Nhava Sheva.
2. HMS 80:20 from Middle East is reported at USD 230-235/MT, CFR Nhava Sheva.
3. Shredded scrap prices in Pakistan are assessed at USD 280-290/MT, CFR Port Qasim.
4. Shredded scrap offers in Bangladesh stand at USD 290-300/MT, CFR Chittagong
5. Turkey HMS 80:20 offers are evaluated at USD 290-295/MT, CFR Turkey.
6. Taiwan scrap offers are seen at USD 260-270/MT, CFR Taiwan.