Ferrous scrap market globally has been range bound this week as the prices have reduced at all places globally after the Chinese billet prices showed correction. The buyers are still in a watchful state towards the market which has restricted them to not stay active in the market.
Chinese Billet prices have seen a 5 month low this month. As the prices stood at RMB 2720/MT (USD 390/MT) Ex-Tangshan including 17% VAT. The prices have almost moved down by USD 65/MT as it was USD 450/MT in Mar’17. The prices of billet in china has shown its effect in scrap market too. Although the prices of Chinese billet have rebound by USD 4-5/MT but the traders are expecting that the prices would not sustain for long.
Turkey
The largest importer of scrap, had a downfall in prices by USD 12/MT W-o-W to USD 268/MT compared to previous week from USD 280/MT .There is no trade in the market as it is effected by the devaluation of Turkish Lira and due to the political referendum that was to be passed in the country .
According to Sources, “The buyers in Turkey have time to wait and test the market given they have all the required stock till May’17.”
India-Pakistan-Bangladesh
According to sources, “Trading activity in the market is low this week as prices in the domestic market have gone down. The offers from Middle East for HMS 1 have dropped down to USD 300/MT levels from USD 305/MT last week and 305/MT for Shredded (US &Europe origin) down by USD 8/MT from last week.
The offers in Pakistan for Shredded scrap are at USD 305/MT levels down by USD 5/MT compared to previous week. And the offers in Bangladesh are seen at USD 315/MT staying unchanged from the last week. There is limited trade heard in the markets of Pakistan and Bangladesh.
Bangladesh Customs have notified the local mills that the quality of scrap should of ISRI standards else the consignment would be rejected.
According to Steelmint Analysis, “The prices of scrap would be under pressure in the coming weeks as it is expected that the Chinese billet would return back to the market strongly. The prices of container freight are expected to furthermore increase because of GRI (General Rate Increase). On one side the prices are increasing and on the other hand the buyers are watching the market cautiously as they are expecting the prices to show more downward correction. The market is expected to stay volatile.”
| particular/delivery | Size, Grade, Origin | Taxes | Prices | Change | 1W | 1M |
|---|---|---|---|---|---|---|
| CNF Bangladesh 21 Apr |
HMS(80:20), Europe | Custom Duty, VAT extra | $315 | 0 | $315 | $315 |
| Shredded, Europe | Custom Duty, VAT extra | $330 | 0 | $330 | $327.5 | |
| CNF India 21 Apr |
HMS(80:20), Europe | Custom Duty, VAT extra | $290 | 0 | $290 | $292.5 |
| HMS-1, Middle East | Custom Duty, VAT extra | $300 | – 5 | $305 | $305 | |
| HMS-1&2, Middle East | Custom Duty, VAT extra | $290 | – 5 | $295 | $295 | |
| Shredded, Europe | Custom Duty, VAT extra | $307 | – 6 | $313 | $310 | |
| Shredded, US | Custom Duty, VAT extra | $307 | – 3 | $310 | $310 | |
| CNF Pakistan 21 Apr |
Shredded, Europe | Custom Duty, VAT extra | $307 | – 3 | $310 | $316.5 |
| CNF Taiwan 21 Apr |
HMS(80:20), US | Custom Duty, VAT extra | $250 | – 5 | $255 | $274 |
| CNF Turkey 21 Apr |
HMS(80:20), US | Custom Duty, VAT extra | $268 | – 12 | $280 | $275 |
| FOB Europe 21 Apr |
HMS(80:20) | Custom Duty, VAT extra | $251 | – 4 | $255 | $259.5 |
Weekly Assessment
Source : Steelmint
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