Mills in India decided to hold their imported ferrous scrap purchases following mixed sentiments. Opinions were split over the price direction for scrap. Most believe Indian finished steel prices could stay flat to down in the near term. Scrap trades could increase as the monsoon recedes and steel producers ramp production in the next two months.
The daily Davis Index for containerized shredded, Tuesday, further dropped by $2.5/mt to $523.75/mt cfr Nhava Sheva. Indian mills remained reluctant to buy imported high grades and focused mainly on HMS trades. Interest for shredded remained scarce even from regular alloy makers despite low inventories. Bids were below sellers’ expectations, who anticipated a recovery.
The daily Davis Index for UAE-origin HMS 1&2 (80:20) declined to $470/mt cfr Nhava Sheva, by $3/mt from Monday. For UAE-origin #1 HMS there were no buyers above $480/mt cfr Nhava Sheva as domestic availability of ferrous scrap and other alternatives like sponge iron and pig iron were attractive.
Domestic melting scrap prices in Alang recovered on Tuesday. Melting scrap traded at Rs35,300/mt ex-Alang, up Rs500/mt since trades resumed. In Mumbai, the asking prices for rebar dropped by Rs200/mt to Rs49,300/mt ex-works on Tuesday.
In Mandi Gobindgarh, ingots traded at Rs45,100/mt ex-works on Tuesday, slightly up by Rs300/mt from Monday. Demand for rebar showed a slight recovery in North India as Chinese steel prices recovered.
Chinese steel prices maintained an uptrend for the second day on Tuesday, following an increase in coking coal and ferroalloy futures.
Domestic steel prices moved up by CNY15-30/mt on Tuesday while export sentiments remained weak. Chinese exporters assessed potential risks on export tariffs and awaited buying indications from Japan, India, Russia and other Southeast Asian suppliers.
After a sharp drop, international iron ore prices rebounded nearing $140/dmt cfr China for Fe 62pc spot sales. Daily domestic billet price in China recovered by CNY20/mt to CNY4,930/mt ex-Tangshan inclusive of VAT on Tuesday. Bids for imported billet remained below $660/mt cfr China resulting in low Indian export offers on fob basis on suspended trades.
Subcontinent
The daily Davis Index for containerized shredded on Tuesday, settled at $528.13/mt cfr Indian subcontinent, down by $1.63/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $486.63/mt cfr Indian subcontinent, down by $2.30/mt. A decline in global ferrous scrap prices is reflected in South Asia.
According to freight data with Davis Index, normalized weekly container freight rates on the New York to Bangladesh route rose to $90.3/mt, up $2.19/mt. While those for Pakistan and India remained unchanged at $51.74/mt, and $47.01/mt, respectively.
($1=Rs74.20; CNY6.48)