Posted on 29 Apr 2022
The recent flood of Russian-origin semi-finished steel into Turkey and Southeast Asia has troubled UK and US scrap suppliers, creating a panic situation in the market. Before prices drop further, sellers are seen compromising on offers in order to book cargoes in Turkey and the Indian subcontinent, sources inform Kallanish.
Offers for UK-origin shredded scrap have plunged by $40-50/tonne on-week to $590-600/t cfr Kandla and $600-610/t cfr Nhava Sheva. Two separate deals were heard concluding on Thursday for 1,500-2,000 tonnes of UK-origin shredded scrap at $590/t cfr Kandla and $610/t cfr Nhava Sheva.
“This is a clear scene of panic sales,” opines a senior scrap trader. “Russia is aggressively placing billet in Asia and Turkey, which has significantly reduced scrap imports. Firstly, we saw it in Turkey and now in India too. It won’t be hypothetical now to expect a further downfall in the coming days.”
Offers for United Arab Emirates-origin HMS1 were seen swinging from $545-550/t earlier this week to $560-565/t cfr Nhava Sheva on Thursday. Earlier this week, mills reportedly booked around 2,000-2,500t at $550/t cfr Nhava Sheva and $545-550/t cfr Kandla. On Thursday, Punjab-based mills reportedly booked 2,500-3,000t of HMS1 at $560-565/t cfr Kandla. Earlier this week, Gujarat-based mills booked HMS1 at $540/t cfr Kandla.
UAE-origin HMS 1&2 80:20 offers plunged to $545-550/t cfr Nhava Sheva and Kandla; however, deals are noted occurring at $540/t cfr. West African-origin HMS 1&2 80:20 deal prices are heard at $530-540/t cfr Mundra and Chennai. Punjab-based mills bought UAE-origin fabrications at $590/t cfr Kandla last week.
Indian domestic scrap offers also picked up on Thursday, noted at $616/t ex-North India, $657/t ex-Central India, $593/t ex-East India and $570/t ex-West India.
Offers for ship scrap from containers are, meanwhile, noted at $690/light displacement tonne (ldt). Scrap from dry bulkers and tankers is hovering at $670/ldt and $680/ldt, respectively.
Source:Kallanish
