Scrap offers in the global market continue to fall at an alarming rate. Shredded Scrap offers from Europe to India have declined by another USD 5-10/MT. Meanwhile, depreciating Indian Rupee is adding further resistance.
Scrap market all across the globe is tensed. After a sharp downfall in offers from US & Europe to Turkey, Scrap offers in India have also reduced by USD 5-10/MT. Market participants shared current offers for HMS 1&2 are in the range of USD 265-270/MT and for Shredded are USD 275-280/MT from Europe.
A Rebar manufacturer in Jalna informed, “We were getting offers for premium quality Shredded of UK-origin at USD 280/MT and have booked about 1,000 MT material with discount of USD 2-3/MT on it. Other traders are offering Shredded (low quality) even at USD 270-275/MT.”
To clarify further about the variation in Shredded Scrap offers, an exporter based in Europe shared, “Currently, the material is being offered in the range of USD 275-280/MT. Shredded Scrap of 210 grade with 26 MT loading is offered at USD 275/MT and 211 grade with about 27.5 MT loading at USD 280/MT, CFR India.”
[su_pullquote][su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]A deal of 500 MT US-origin Shredded Scrap was settled at USD 278/MT, CIF West Coast of India.[/su_note][/su_pullquote]
Although, this would be surprising, exporters in Middle East are still to reduce their offers and assertively holding at USD 280-287/MT for HMS 1&2 and USD 300-305/MT, CFR India for HMS 1.
Highly volatile market across the globe is supporting Middle East suppliers to hold their offers at comparatively high level. Participants at this juncture are in favor to book Scrap from Middle East to avoid risk of delayed shipment (time-value-money).
[su_pullquote align=”right”][su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]Shredded Scrap offers in Bangladesh were heard at around USD 300/MT. While, the buyers are negotiating for USD 10-15/MT, CFR Chittangong. P&S of 500 MT was sold at USD 305/MT, CFR Chittagong.[/su_note][/su_pullquote]
Offers from South Africa were also heard at USD 260-265/MT (HMS 1&2) levels, with a deal confirmed of a handsome quantity at about USD 255-256/MT, CIF Pipavav Port.
Adding to the trouble, recent depreciation in Indian Rupee against USD is also resisting Scrap buying in India, making it further expensive for Scrap buyers.
Despite market has fallen to a remarkable level, lack of enthusiasm in buyers may further push down the Scrap offers in Indian market.
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