Japanese Busheling Shredded Scrap Offers at USD 260-265/MT CFR India

Japanese busheling shredded ferrous scrap offers to Indian market continue to remain high this week despite low buying interest. Reason for hike in offers is better realization in Korean market and strong Japanese Yen.

Current offers for Japanese busheling shredded are in the range of USD 260-265/MT, CFR Nhava Sheva, which were USD 255-260/MT last week.

Container freight from Japan to India is around USD 40-42/MT. Prices on FOB Japan basis are around USD 215-220/MT, equivalent to Yen 22,500/MT.

Buyers (Induction furnaces) are resisting to take positions at these levels. Indian smelters mentioned that offers are high and not feasible at current steel prices.

Shredded scrap offers from US/Europe are assessed in the range of USD 225-230/MT, CFR Nhava Sheva but no major deals were heard to be concluded.

It is to be noted that a bulk scrap vessel of 19,500 MT from Japan is expected to be berthed on Indian west coast in June.

Strong Japanese Yen

Japanese Yen remain strong despite other currencies depreciate after ‘Brexit’. Japanese Yen appreciated by about 8% in last one month and about 4.5% in last one week.

Currently, Japanese Yen is trading at 102/USD, which was 107/USD a week back and 111/USD a month back. Strong Yen has forced exporters to raise their offers.

Japanese scrap prices

Source: SteelMint Research