Shredded Scrap Offers to India Fall Further by USD 5-10/MT

Shredded scrap offers to Indian market noticed further downtrend of USD 5-10/MT this week amid China offering cheaper billet all across the globe.

Current offers for shredded scrap (ISRI 211) has dropped to USD 265/MT CIF Nhava Sheva, despite the fact that there are not many sellers in the market; buying interest remained nil even at these levels. Last week offers were recorded at USD 270-275/MT CIF.

India is the third largest importer of scrap in the world, followed by Turkey and South Korea. Both these countries are preferring Chinese billets over scrap due to lower cost, which has resulted in fall in scrap prices globally.

HMS 1&2 prices are assessed at USD 220-225/MT CIF Turkey, which were at USD 270-275/MT in the month of June.

Indian Billet prices hit a 5-year low

Indian steel makers are very conservative in making fresh bookings owing to consistently falling steel prices in domestic market. Billet and rebar prices have touched a 5-year low in second week of July’15. Billet prices in Mumbai are assessed at INR 24,300/MT (Ex- works), which were INR 26,800/MT (Ex- works) in June.

Scrap Traders expect some stability 

Scrap suppliers expect some stability in prices in August as Chinese mills have started curtailing their production, coupled with Greece crisis, which seems to have resolved. Also, countries like Bangladesh, Pakistan, Indonesia, Turkey will get active after Ramdan festival which will end by July last week

Trade Wise:

1. HMS 80:20 (25 tonnes loading) from South Africa at USD 245-250/MT CIF India
2. HMS 80:20 from Middle East at around USD 250/MT CIF India
3. Shredded scrap offers from Europe/US at USD 265/MT CIF India and Pakistan
4. LMS bundle scrap from Australia at USD 220-225/MT, CIF Chennai
5. Chinese chromium billet at USD 320/MT, CIF Bangladesh (bulk shipments)
6. Melting scrap prices in Mumbai at INR 18,500/MT (Ex- Works)

Global Scrap Offers as on 16 Jul’15