Middle East based scrap suppliers are offering cargoes at higher rate despite falling offers from Europe and US. HMS 1&2 offers from Middle east are at USD 225-230/MT CFR India, whereas, European offers are at around USD 210/MT CFR India.
Market participants mention that generally middle east exporters charge a premium of USD 10/MT, but due to high volatility in currency and scrap prices, Indian importers are paying a premium of USD 15-20/MT.
“It takes about 30-40 days from US/Europe and about 10 days from Middle East. In the situation of much fluctuation in currency and prices falling in global market, not many importers want to take chances”, said an indentor based in Mumbai.
Landed cost of HMS 80:20 from Middle East is around INR 17,500-18,000/MT, whereas domestic scrap prices are hovering at INR 18,000-18,500/MT (ex- Mumbai). It may be noted that imported scrap prices fell about 10% in September.
Global scrap offers as on 23 Sept
| Particular/Delivery | Size/Grade | Prices in USD/MT |
| CNF Mumbai, India | HMS(80:20), Europe | 210 |
| HMS-1, Middle East | 240 | |
| HMS-1&2, Middle East | 230 | |
| HMS-1&2, S.Africa | 225 | |
| Shredded, Europe | 225 | |
| Shredded, US | 225 | |
| CNF Taiwan | HMS(80:20), US | 160 |
| CNF Turkey | HMS(80:20), US | 198 |
| FOB Japan | Busheling Shredded, Japan | 200 |
| FOB Rotterdam, Europe | HMS(80:20), Europe | 175 |
| FOB US East Coast | Shredded, US East Coast | 192 |
Source- SteelMint Research
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