Why do Indian Scrap importers anticipate prices to fall by $15-20 in June?

Ongoing economic
crisis in Europe has weighed upon demand for steel in China and other
countries. Probably steel industry is undergoing one of the roughest patch
reported market experts to SteelMint.

Why do Indian Scrap
Importers expect scrap prices to fall $15-20 in International market?

Turkey: Falling Euro against Dollar has made
local scrap cheaper.

US: US exporters might cut offers on strong
dollar and poor demand.

India: Buyers unwilling to take positions on weak
Rupee.

China: Sluggish demand, iron ore prices have
corrected over $15/t in last 1-month.

Japan: Steel mills cut purchase prices.

TURKEY: Turkey being one of the largest
exporter of scrap from Europe and US is facing sluggish demand in Steel. Re-bar
and billet prices have softened in last few weeks so has scrap prices.

With falling Euro
against US dollar, domestic scrap is cheaper than imported from US or other
countries in Europe. Currently HMS 80:20 CFR Turkey is quoted at $420-425/MT
but expected to fall by another $10-15/MT, say local traders.

INDIA: India is also
a larger importer of scrap and currently
facing currency de-valuation against US
dollar, where Rupee has corrected over 8-9% in last few weeks, Indian
importers are unwilling to take positions at current levels of $445/t (CFR Nhava
Sheva). Probably if prices fall by another $15-20 some interest will rise from
importers.

Currently imported
scrap is expensive by Rs 2000/MT than local scrap, said local traders.

JAPAN: Tokyo Steel cuts Scrap purchase Prices
further by over $6/MT

Tokyo Steel
Manufacturing Co, Japan's largest electric steelmaker, has cut the scrap
purchase prices further by over US$6/MT (JPY 500/MT) at its Tahara and Okayama
plants, effective from May 18. the co's purchase prices of local ferrous scrap
remain unchanged this time at its rest 3 works including Takamatsu steel
center.