India’s imported ferrous scrap prices rose on the back of increased enquiries from mills this week. A bulk trade reported this week also pushed offers up. Indian buyers booked containers for July shipments. Mills in the country have stayed away from trades for over two months. Once consumption picks up, a shortage of ferrous scrap is likely to arise in the market.
Early this week, a bulk cargo trade for US West Coast-origin 30,000mt mix scrap at an average price of $280/mt cfr Kandla was reported. For June loading, 10,000mt HMS 1&2 (80:20) and 20,000mt shredded was booked at $280/mt cfr Kandla. But after these trades, buyers have back out and are likely to stay away for the next few days. Alternatively, mills could turn to competitively priced domestic scrap or sponge iron.
The daily Davis Index for containerised shredded settled at $285/mt cfr Nhava Sheva on Friday, up by $5/mt from the prior week. Very few bids for shredded were in the range of $275-280/mt cfr Nhava Sheva. Few traders raised offers for the UK and European origin shredded scrap in containers to $285-288/mt cfr Nhava Sheva. But buyers were not keen to book at those prices.
Traders are likely to be exercise caution before booking more material as mills continue to struggle with a labour shortage and weak end-user demand.
The daily Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled unchanged at $265/mt cfr Nhava Sheva. The daily index for US-origin HMS 1&2 (80:20) was at $265/mt cfr Nhava Sheva, up by $3/mt. Trades for HMS 1&2 (80:20) were reported at around $265/mt cfr Nhava Sheva.
South African HMS 1&2 (80:20) traded at $260-265/mt cfr Nhava Sheva, up by $10/mt from the prior week. Brazilian HMS 1&2 (80:20) traded at $250-255/mt cfr Nhava Sheva.
Offers for the UK and Europe-origin HMS 1&2 (80:20) were at $253-258/mt cfr Nhava Sheva, up by $10/mt from the prior week. Australia-origin HMS 1&2 (80:20)traded at $260-265/mt cfr Nhava Sheva and Mundra, up by $10/mt from the prior week.
In Goa and Chennai, mills booked West African HMS 1&2 (80:20) at $250-255/mt cfr Goa and Chennai.
The index for busheling in containers settled at $298/mt cfr Nhava Sheva, up by $13/mt from the prior week and the weekly index for P&S settled at $283/mt cfr Nhava Sheva, up by $10/mt from the prior week. Turning scrap traded at $240/mt cfr Chennai.
Imported ferrous scrap prices in Taiwan were flat on Friday with the index for US HMS 1&2 (80:20) settling at $238/mt. Offers for US-origin HMS 1&2 (80:20) were at $237-240/mt with no major trades heard. Offers remained firm amid increased buying by Turkish mills. But weak finished steel sales in Taiwan kept trades low. Few trades for #1HMS took place at $233/mt cfr Kaoshiung. Offers for Australian origin HMS 1&2 (80:20) were at $245/mt. Buyers preferred South American scrap.
In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $265/mt cfr Taiwan and but bids were at $260/mt cfr Taiwan. Japanese suppliers raised export offers as Tokyo steel increased domestic prices for steel scrap by JPY1000/mt on Friday. Effective June 6, the mill increased bids by JPY1000/mt for scrap delivered Utsunomiya and Kyushu. Bids at other three plants rose by JPY500/mt.