Imported ferrous scrap offers in India continued to trend up. Buyers have thus turned silent considering the unviable price levels. Secondary steelmakers are still struggling in the face of weak demand. Primary steelmakers raising finished steel prices has failed to boost the sentiment in the secondary steel sector.
A shortage of containers and the resulting rise in freight rates could continue for at least a month due to a mismatch between imports and exports. Importers may also face customs clearance delays leading to additional tariffs in the coming days. In Turkey, a few offers bulk HMS 1&2 (80:20) reported at prices above $420-430/mt cfr Turkey, the highest since 2012. The bullish Turkey market sent reverberations to the South Asian markets, where offers rose.
The Davis Index for containerized shredded on Monday increased by $6.87/mt to settle at $418.75/mt cfr Nhava Sheva. There were no new deals for shredded reported after some deals at $405-410/mt cfr Nhava Sheva late last week. Producers of flat steel are faring comparatively well in the market. Long steel producers are still struggling. In North India, buyers stayed away from the market as farmers protest against the new agricultural bill. The widespread demonstrations have hit transportation, disturbing material movement.
Traders believe if the Turkish shredded price touch $420-425/mt cfr, price levels in India or Pakistan could also surge to similar levels.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $403/mt cfr Nhava Sheva, up by $13/mt from Friday. Offers for containerized #1 HMS without the cast and galvanized iron from Dubai were at prices above $405/mt cfr Nhava Sheva on Monday, with no buyer interested in those price levels.
The Davis Index for US-origin HMS 1&2 (80:20) settled at $401.25/mt cfr Nhava Sheva on Friday, up by $12.68/mt from Friday. Offers for containers of the grade were heard at $400-405/mt cfr Nhava Sheva on Monday, with bids at $375-385/mt cfr Nhava Sheva. Suppliers from South Africa and West Africa stayed away from the market due to permit issues and low collection rates.
The rise in input cost pushed billet export prices up, with some Indian mills targeting $520-530/mt fob India. Meanwhile, Iranian billets were priced at $500-505/mt fob Iran.
Mills opted for domestic ferrous scrap, availability for which has started to ease. With the resumption of iron ore mining in Odisha, the persisting supply crunch for iron ore, and thereby Sponge iron, is also expected to ease soon. Thus, there was strong resistance towards bullish imported scrap prices in India, unlike in Pakistan and Bangladesh. Buyers are now eyeing January when they believe prices could decline.
The Davis Index for containerized shredded, Monday, settled at $419.67/mt cfr India subcontinent, up by $8.93/mt from Friday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $401.42/mt cfr India subcontinent, up by $12.7/mt from Friday. Freight rates on the New York to South Asian markets were unchanged on Friday, from the prior week.