Global
ferrous scrap market continues to hold the firm in line with the limited supply
and winter season. Offer prices for ferrous scrap have gone up by $20-30/MT
from December.
India: Weak
Rupee and tight supply in global markets continues to hurt Indian buyers.
Offers are hovering at $410/MT CFR Chennai for HMS and $420/MT CFR Chennai for
shredded scrap. In Nhava Sheva Mumbai, same grades are offered lower by $5-10/MT
CFR
Europe: European
scrap markets have shown a price increment due to tight supply. In southern
Europe, scrap traders lift the scrap prices by $7-13/MT (EUR 5-10/MT). HMS now
is transacted at $395-408/MT (EUR 300-310/MT), new scrap at $414-434/MT (EUR 315-330/MT)
and shredded scrap at $408-420/MT (EUR310-320/MT). In central Europe, prices are
up by $32-33/MT (EUR 25/MT) from November. HMS is being sold higher by
$15-16/MT (EUR 12/MT) to $374/MT (EUR 284/MT) while shredded scrap increased by
$14/MT (EUR 11/MT) to $376/MT (EUR 286/MT).
China: Winter
season coupled with the Christmas holiday has lifted the scrap prices to Asian
mills. Further, the rise in steel product price has improved the demand for
steel scrap from furnaces. It has supported to the steel scrap markets.
Reportedly,
China imported 2 cargoes of scrap from US West Coast (USWC) including HMS
1&2 (80:20) and the shredded scrap at US$403/MT CFR & US$408/MT CFR
respectively.
Japan: Tokyo
Steel manufacturing Co. has announced to hike its scrap purchasing prices by
$6/MT (JPY 500/MT) at its all units, effective from December 27th. After the
hike in prices, average scrap purchase price remains at (for HMS 2) $304-327/MT
(JPY 26,500-28,500/MT).
East Asia: The
import scrap markets slightly pick up due to the limited supplies from USWC. Stock
rebuilding from the local steel mills has also lifted the scrap prices.
Considering
the tight supply and the stock replenish from steel mills, the global steel
scrap markets expected to remain strong in the coming weeks.
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