Asia’s imported scrap market remained silent this week due to Eid holidays for almost 9-10 days in Pakistan and Bangladesh coupled with low viability in India.
Imported scrap offers to India remain unchanged relatively due to limited trade activities. Falling billet prices in Indian market has kept steel smelters stick to domestic scrap and sponge iron.
Current offers for HMS scrap from Middle East are assessed at USD 210/MT for 25 MT loading, USD 205-210/MT from South Africa (bidders are bidding at USD 195/MT) and USD 205/MT from Europe.
Offers for shredded scrap are hovering in the range of USD 220-225/MT, CFR Nhava Sheva (Mumbai, India) origin USA.
A manufacturer quoted, “I have heard that US origin shredded scrap sold at USD 215/MT, CFR this week.”
Limited buying interest from smelters; prefer sponge iron
Indian smelters prefer sponge iron over imported scrap owing to high disparity in prices; sponge being cheaper. Market participants report that JSW Steel (Dolvi) has increased merchant supply of sponge iron from its Dolvi plant. The company is reportedly selling around 30,000-40,000 MT high grade sponge iron every month at an average price of INR 14,200-14,500/MT ex-works (USD 215-220).
Import falls in Jun’16
Ferrous scrap import to India fell in the month of June by 12% owing to fall in containerized scrap trade. India imported 0.48 MnT in Jun’16 against 0.55 MnT in May’16.
Global imported ferrous scrap offers in week 28
| Particular | Size | Prices | W-o-W | M-o-M | Remark |
| CNF India | HMS(80:20), Europe | 205-207 | -5 | -5 | Trade activities remain low. High disparity between sellers offers and buyers expectation. Smelters prefer domestic scrap and sponge iron. Trade activities may further remain low. |
| HMS-1, Middle East | 210-212 | -10 | -5 | ||
| HMS-1&2, S.Africa | 205-210 | -5 | 0 | ||
| Shredded, Europe | 220-225 | -5 | 0 | ||
| Shredded, US | 220-225 | -5 | 0 | ||
| CNF Taiwan | HMS(80:20), US | 195-200 | -5 | +15 | Trade activities low, prices fall. |
| CNF Turkey | HMS(80:20), US | 210-215 | -3 | -30 | Prices down on account of festive season. |
| CNF Bangladesh | Shredded, Australia/Europe | 230-235 | – | -10 | Market will open from 10 Jul’16. Buyers will watch for 2-3 days then begin purchases. Prices expected to be range-bound. |
| HMS 80:20, Australia/Europe | 210-215 | – | -10 | ||
| CNF Pakistan | Shredded, US/Europe | 225-230 | – | -15 | Market to open from Monday i.e 11 Jul’16. Buyers may remain cautious as Turkey prices have fallen. |
Prices in USD/MT
Source: SteelMint Research
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