Strengthening of Indian currency may draw feasibility for Indian Scrap importers.
The Indian rupee has appreciated against the greenback settling at INR 61. Slowly, but the appreciating currency is bringing import parity for Indian Scrap importers. This appreciation in currency has made Scrap cheaper by around INR 300-400/MT [(USD 360/MT * INR 62) – (USD 360/MT * INR 61) = INR 360/MT].
Fluctuation in HMS Offers (USD/MT CFR India) from US in the last 3-month
|
Date |
Shredded Offers |
INR/USD |
Realization in INR |
|
8 Jan’14 |
370 |
62.18 |
23,006.6 |
|
8 Feb’14 |
382 |
62.07 |
23,710.7 |
|
8 Mar’14 |
373 |
61.23 |
22,838.8 |
As per our interaction with some of the market participants, market has witness some buying interest from Indian Scrap consumers.
[su_quote cite=”A Billet manufacturer based at Mumbai“]Currency appreciation has made imports feasible for us. We have currently booked materials at around INR 25,300/MT.[/su_quote]
Falling Domestic Demand in USA may lead to better Offers for the Global Buyers
US domestic Scrap rates declined last week owing to poor demand from the steel mills. The prices of Shredded Scrap at Chicago and rest Mid-west had fallen by USD 15-20/MT hovering at about USD 385-395/MT, whereas for HMS, it was down by USD 10-15/MT.
This price fall may force the American State’s traders to seek buyers in the global market. It is believed that this sluggish domestic demand will pull down the US Scrap offers to India up to a certain extent.
Currently, offers from Dubai had fallen from USD 370-375/MT to about USD 360-365/MT in a week’s time.
A source reported that a deal of 3,000 MT HMS 1 & 2 was recently sealed at about USD 364/MT CFR India with Poland. The shipment has already taken place and the material probably to be landed at Mundra port.
Leave a Reply