India: Scrap Prices just doesn’t find a brake; decline by another USD 5-10/MT

Imported Scrap offers to India open with another fall of USD 10/MT this week and are in the range of USD 280-285/MT, CFR India.

Bearish sentiments governing Steel industry across the globe is driving Scrap offers to record a new low, after 2008 recession. Scrap prices at the moment is quite volatile and is grabbing special attention, witnessing a downfall of around USD 25-30/MT in a month’s time.

Recent offers for HMS 1&2, heard in the range of USD 280-285/MT, CFR India from major exporting countries like Europe, Middle East & South Africa, though buying inquiries are found at around USD 275/MT, CFR India.

An exporter based in Dubai shared to have sold around 200 MT HMS Scrap (no GI, no CI) at USD 280-282/MT, CFR West Coast of India.

Similarly, offers for Shredded have fallen sharply and are currently offered in the range of USD 300-305/MT. A trader based in Mumbai shared to have booked European Shredded at USD 305/MT, CFR WCI Port, recently.

Selling pressure could be easily seen in Scrap market, after looking at the uniform Scrap (HMS 1&2) offers to India, Pakistan & Bangladesh at around USD 280-285/MT, CFR. Billet offered by China & Russia to these countries is coming out to be a greater threat to Scrap suppliers.

After analyzing the tensed price and multiple factors like global uncertainties, currency fluctuation and upcoming Indian budget, Indian buyers are confined to either hand to mouth booking or postponing purchases.

In outlook, Scrap prices are in a row to decline further as we can see its a complete buyers’ market right now.