Indian ferrous scrap offers were on an uptrend amid strong global cues, which kept buyers away in spite of strong domestic fundamentals. Also, global uncertainty about shipping of materials amid upcoming winter break in most supplier countries kept trades on hold.
A few states in the country are experiencing COVID-19 restrictions again, which along with high freight rates is adding to the uncertainty in the market. Shipping lines tried to secure empty containers on the US-Asia route and rejected some deliveries due to container shortage and vessel delays.
In Turkey, the Davis Index for US-origin HMS 1&2 (80:20) rose to $357.5/mt cfr Turkey, rising $4.84/mt from the prior day. Most suppliers focused on catering to the Turkish bulk market and diverted supplies from Asian markets to Turkey. Demand for Turkish finished steel remained bullish, pushing prices up by $20-25/mt in a week.
The Davis Index for containerized shredded on Tuesday settled at $372.86/mt cfr Nhava Sheva, up by $1.79/mt from Monday, negligible number of offers in the market amid tight supply. Most traders having stocks in hand are quoting offers above $375-380/mt cfr Nhava Sheva and $385-387/mt cfr Vizag.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $357/mt cfr Nhava Sheva, up by $2/mt from Monday. Offers for containerized #1 HMS without the cast and galvanized iron from Dubai were at $365/mt cfr Nhava Sheva on Tuesday, with a few deals reported at $360-362/mt cfr Nhava Sheva.
The Davis Index for US-origin HMS 1&2 (80:20) settled at $357.14/mt cfr Nhava Sheva on Tuesday, up by $2.14/mt from Monday. Offers for the grade in containers heard at $355-360/mt cfr Nhava Sheva, depending on quality on Tuesday. HMS suppliers from South Africa and West Africa were away on permit issues and restricted inflows.
Billet export offers soar
Following high imported scrap prices, domestic billet prices in India also increased. In a recent billet export trade, a major producer in the Southern region, sold 30,000mt 4sp billet at $476/mt fob India equivalent to $496-500/mt cfr China. Following the news, a few mills are even targeting $500/mt fob India levels for billet exports from the Southern region.
The Davis Index for containerized shredded, Tuesday, settled at $373.3/mt cfr India subcontinent, up by $2.06/mt from Monday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $357.13/mt cfr India subcontinent, up by $2.71/mt from Monday.