Quantcast
Other Stories

India scrap ferrous metal prices climbed incrementally throughout the month of May as they struggled to compete with other buyers especially Turkey. The weakening of US dollar and stable steel long prices also contrib..

07 Jun 2011

MUMBAI (Commodity Online): India scrap ferrous metal prices climbed incrementally throughout the month of May as they struggled to compete with other buyers especially Turkey. The weakening of US dollar and stable steel long prices also contributed to higher import prices for scrap metals in India, according to The Steel Index. The availablility of scrap tonnage in the market was considerably reduced due to heavy buying by Turkey, according to TSI Monthly report.

TSI Indian index reached its highest level since reporting began on this market. At the recent Bureau of International Recycling (BIR) conference, it was stated that Indian imports are set to be lower this year in comparison to last as importers are finding the high prices prohibitive. Following the price rises in the beginning of the month, the price stabilised as steady demand was offset by an unwillingness by traders to restock large volumes as sentiment wobbles between bearish and bullish. Billet and TMT prices have had little price uniformity in India’s various regions. The high price of scrap has mills looking at scrap alternatives such as direct reduced iron (DRI.

Globally, Turkish and US scrap metal prices also witnessed steady gains with shredded metal prices reaching US $470 per tonne with lower quality material traded in US $440 per tonne range, TSI said. Scrap booking prices rose by US 21/ tonne between the third and fifth week of May on stronger than expected steel demand in Turkish market and recovery in exports to Egyptian markets. Fear of tight supplies contributed to rise in scrap metals prices in US domestic market, TSI monthly report said.

The Hot Rolled Coil (HRC) price has been relatively stable during Q2 this year, but mills across the board have raised their prices by around US$10/t - which reflects their need to offset increased input costs, rather than increasing end-user demand.

US market continues to be bullish with the US inland prices rising by US $19 per tonne last week. This raises the possibility of Turkish buyers facing the prospect of prices rising to US $500 per tonne CFR or otherwise, Turkey needs to stay away from the market temporarily to weaken prices.Turkey may also opt to source from European exporters as they are offering material at a discount to US suppliers.

May saw over 1.1mt of ferrous scrap booked for delivery to Turkish shores from the US, EU and Baltic regions. In three out of the four last years, US scrap prices have risen between June and July. Export demand levels will be crucial to domestic market price direction in July 2011, TSI report said.


YOUR RESPONSE
Click on the image to reload it
Click to reload image
COMMENTS (0)

@2013 COMMODITYONLINE ALL RIGHTS RESERVED