Indian Buyers Start Negotiating for August Scrap Deliveries

Trade sources reported that scrap importers in India have started negotiating for cargoes for August deliveries. Indian importers had booked around 8-10 bulk vessels for which delivery is expected in June and July, thus they have started inquiring for Aug'17 delivery cargoes.

Current offers for containerized Shredded scrap are at USD 295-300/MT CFR Nhava Sheva, India, HMS 1&2 at USD 275-280/MT CFR Nhava Sheva from Europe and US. HMS 1&2 from Middle East are at USD 280-285/MT CFR Nhava Sheva.

However bulk cargoes remain preferable owing to less freight charges compared to containerized cargoes. Offers for bulk scrap cargoes are heard at USD 290/MT, CFR India.

India is one of the major ferrous scrap importers and imported 4.53 MnT ferrous scrap in FY17.

Global ferrous scrap market watch : Week 24

Turkey based mills continue to restock cargoes - Turkey based steel mills continue to restock cargoes ahead of Ramadan holidays. Details of deals concluded are as follows:

In an another deal concluded between UK based SIMS to Turkey based ICDAS for 40,000 MT HMS (80:20) at an average price of USD 269/MT and 25,000 MT Shredded at an average price of USD 278/MT.

In another deal that has been concluded by US based SIMS to Turkey based Ekinciler Iron & Steel for a cargo containing 12-17,000 MT Bonus at an average rate of USD 287/MT; 0-10,000 MT Shredded at USD 279/MT, balance up to 40,000 MT HMS (80:20) at USD 274/MT.

Deal between Habas (Turkey based steel producer) and Europe based Metruna for HMS (80:20) at an average rate of USD 271/MT.

Imported scrap offers to Taiwan move up - Imported scrap offers to Taiwan have moved up this week. Offers for HMS (80:20) of US origin have moved up by USD 5/MT W-o-W and are presently seen hovering in the range of USD 245-250/MT, CFR Taiwan.

Japan tender floated by Kanto Tetsugen which received bids higher by USD 7/MT. As per sources, the average bid price in Jun'17 tender was at USD 232 (Japanese Yen 25,525) FAS higher by USD 7 (Japanese Yen 790) against the previous month's tender conducted in May'17.

4-5 bulk scrap vessels booked by Bangladesh mills - Steel mills became active in importing bulk scrap cargoes. As per sources, 4-5 bulk vessels have been booked in last few days from Europe and Japan. Containerized scrap offers for Shredded scrap are at USD 315-320/MT CFR although buying interest is at around USD 307-310/MT CFR Chittagong. P & S scrap offers are at USD 310-315/MT CFR Chittagong and HMS 1&2 at around USD 285/MT CFR Chittagong.

Pakistan scrap import offers remain firm - HMS 1 scrap offers from UAE to Pakistan are heard at USD 285/MT, CFR port Karachi and USD 290/MT, CFR port Qasim.

Looking at current scenario it is anticipated that seaborne scrap prices are unlikely to fall sharply.