Friday, January 15,
LME Steel Billet prices are down by $17/tonne to reach at $551/tonne, where as International scrap prices noticed slight correction. Trading activities remained low due to the week end.
International scrap prices showed some resistance at $500/MT levels and there were hardly bookings at this rate from Indian buyers.
In the Indian market, traders note that demand has been weaker this week. “With the ingot price pegged at 30,000 Rupees, it’s hard for shredded prices into India to get over $500/ton cif basis. As soon as ingot reaches 40,000 Rupees however, this may be possible”, a UK exporter of shredded scrap told.
He continues, “Also, the Indian government is attempting to control steel prices as means to control inflation, as they don’t want it to jump.” An Indian trader adds that they prefer to take cargoes from Dubai and from the local market over the UK; “The UK can only offer cargoes of shredded over $500/ton and by the time they load and ship the material, it arrives at the end of February. Why would we do that? The whole market could have totally shifted by then.”
In the UK market, traders accept of an “over-availability” of scrap material. “The UK yards are sitting on big stocks and are now trying to sell off material”, a UK-based trader said. In the UK, shredded scrap is quoted at £295-300/ton ex-works. In the Southeast Asian market, scrap offers into the region breached $500/tons cfr basis for HMS 1&2 (80: 20). Offers of HMS 1&2 (80:20) are quoted this week $500/ton cfr basis.
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