Shredded scrap offers to India reach at $420-425/MT CFR Mumbai.

Offers to Indian importers for shredded scrap
in containers are hovering at $420-425/MT CFR. Some exporters are even quoting
$430/MT but Indian buyers unwilling to pay that price. Some deals heard to have
concluded at around $425/MT CFR on higher side. Falling steel demand and devaluated
Rupee have restricted Indian importers to book major deals.

Far East: Falling steel prices put pressure on Scrap prices

Japan: Falling steel
demand has restricted Far East steel mills to cut their scrap purchase prices
this month.

Japanese Tokyo Steel cuts
scrap buying prices, effective from 28 August 2012. It has cut all its scrap
buying prices by $13-15/MT (Japanese Yuan 1,000/MT). Prices were anticipated to
reach its peak. Reportedly, 2 weeks ago, Tokyo Steel has lifted the prices by $25-32/MT
(Japanese Yuan 2,000-2,500/MT).

Currently, Tokyo
Steel's H2 buying prices reach at Tahara and Utsunomiya to $354/MT (Japanese Yuan 28,000/MT),
with material for seaborne delivery to Okayama reaching $367/MT (Japanese Yuan 29,000/MT).

China: Domestic
scrap prices across the country drop this week by over CNY 50-60/MT ($8-10/MT).
In southern China, prices dropped by CNY 60/MT ($9.50/MT) and scrap purchase
prices reach to CNY 2,620/MT ($412.50/MT) delivered to mills, including 17%
VAT.

In northern China, a CNY
50/MT deduction was seen in scrap prices. Buying price for HMS reach to CNY
2,650/MT ($417/MT) including VAT 17%.

Market prices for HMS are
prevailing at CNY 2,500-2,600/MT in the south and Yuan 2,700-2,750/MT in the central
region. All prices include 17% VAT.

$1 = Rs 55.6251, JPY 78.6443, CNY 6.3528