Indian imported scrap prices were mixed on Tuesday. Domestic finished flat and long steel prices strengthened. Though raw material demand is expected to recover, opinions on the price direction were varied.
Buyers are waiting for either imported scrap prices to drop or finished steel end-user demand to pick up before opting for trades.
In the bulk market, offers declined by $5-10/mt for HMS 1&2(80:20) to $295-300/mt cfr Kandla on Tuesday, however, no trades were reported.
The daily Davis Index for containerized shredded settled at $313.63/mt cfr Nhava Sheva, down by $0.48/mt. A few offers for UK-origin containerized shredded were unchanged at $315-318/mt cfr Nhava Sheva and Mundra with no buyers interested at those levels. Trades for shredded were reported late last week in the range of $312-314/mt cfr Nhava Sheva.
Some mills were willing to accept current offer levels amid increased domestic steel prices. Billets from India were offered at prices equivalent to $430-435/mt cfr China with no buyers at those levels. On fob basis, bids were not above $410/mt fob India for billets, said a Singaporean trader.
Most mills are likely to refrain from doling out fresh offers, at least till the time bids in the export market rise by another $10/mt. They opted to sell in the domestic market instead where billet prices rose by Rs1,000-2,000/mt from the prior week. In China, iron ore prices crossed $127/mt cfr China for material with 62pc ferrous content, rising $6/mt in a day. Iron ore prices have hit a six-year high amid bullish steel demand supported by infrastructural projects.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $302.95/mt cfr Nhava Sheva, up by $0.95/mt from Monday. Prior confirmed deals for Dubai-origin material were heard at $295-300/mt cfr Nhava Sheva for its shorter delivery time compared to that of the UK or the US. However, on Tuesday no fresh bookings were heard.
Offers for US-origin HMS 1&2 (80:20) were at $300-305/mt cfr Nhava Sheva on Tuesday, with bids still at $295/mt cfr Nhava Sheva. The index for US-origin HMS 1&2 (80:20) settled at $298.57/mt cfr Nhava Sheva, up by $0.32/mt from Monday.
The Davis Index for containerized shredded settled at $306.33/mt cfr India subcontinent on Tuesday, down by $0.85/mt from Monday. The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $291.20/mt cfr India subcontinent, down by $0.80/mt. These indexes dropped marginally amid lowered containerized freight rates from the prior week as per Davis Analysis.