Imported ferrous scrap trades slowed in India as mills took a breather on Wednesday. Despite strong global cues, prices in India remained unchanged as mills refused to accept high offers. Slowing demand infused bearish sentiments halting the price rally.
The daily Davis Index for containerized shredded settled unchanged at $467.5/mt cfr Nhava Sheva as little material was available at lower offers. Mills opted for domestic scrap over imported and showed little interest in booking imports.
Offers for UK/EU-origin shredded remained at $470-475/mt cfr Nhava Sheva with no buyers at those levels.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Tuesday, settled flat at $426/cfr Nhava Sheva as trades slowed. Offers for Dubai-origin HMS #1 and P&S ranged between $425-435/mt cfr Nhava Sheva.
The index for US-origin HMS 1&2 (80:20), Wednesday, was flat at $427.5/mt cfr Nhava Sheva. Suppliers held offers in anticipation of stronger domestic demand in March. HRC prices in the US hit a record $1,250/mt ex-works fueling bullish sentiment.
The weekly Davis Index for cast iron, rotors and drums, Wednesday, rose by $6/mt to $441/mt cfr Nhava Sheva. Offers rose to $460-465/mt cfr Nhava Sheva, but buyers refused cast imports above $420-425/mt cfr Nhava Sheva.
Shipbreaking scrap prices in Alang, Wednesday, fell Rs400-500/mt after rising successively over the past few days. GST and transport-related issues pulled down prices despite healthy demand.
Towards mid-March, there could be tightness in domestic scrap pushing importers to resume trades, said traders. Despite the fear of another wave of the COVID-19 pandemic and related restrictions, a shortage of material kept prices firm.
Ingot prices in Mandi Gobindgarh dropped marginally to Rs40,300/mt ex-works on Wednesday.
In China, pollution-related restrictions are expected to curb production. HRC offers were above $710-715/mt fob in the spot market with HRC futures rising to CNY5,000/mt. Australian iron ore with 62pc Fe content rose above $175.5/mt cfr China with a jump in iron ore and steel futures. Domestic billet prices rose by CNY150/mt to CNY4,430/mt ex-Tangshan including VAT. Iranian billet rose above $565/mt fob with offers for billet rising above $605-615/mt cfr Southeast Asia on Wednesday.
On Wednesday, the daily Davis Index for containerized shredded slipped to $469.83/mt cfr Indian subcontinent, down by $1.13/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $434.20/mt cfr Indian subcontinent, largely stable. Availability of containers and delays in deliveries resulted in Indian mills opting for UAE-origin scrap.