Indian imported ferrous scrap prices fell by $10-20/mt this week, in line with the decline in global scrap prices.
Strong demand for finished steel resulted in active bookings early in the week, but trades slowed in the latter half. Bookings declined amid indications of a further potential global price drop.
The Davis Index for containerised shredded fell by $11/mt to $282/mt cfr Nhava Sheva from a week ago. At the beginning of the week, shredded trades were at $285-287/mt cfr Nhava Sheva which subsequently fell to $280-282/mt cfr Nhava Sheva.
As the week closed, bids for shredded from major steel mills fell in the range $275-280/mt cfr Nhava Sheva driven by a drop in global ferrous scrap prices. Traders were unwilling to offer material at those levels citing likelihood of a healthy spread between domestic steel demand and rebar in the coming days. Many mills are short of their March ferrous scrap requirements at present and are expected to increase bookings next week.
Global bulk ferrous scrap market was quiet for over three weeks resulting in a pressure on suppliers. US and UK suppliers held abundant stocks and rushed to sell in Asian markets, especially India where prices were better than those in Pakistan and Bangladesh. Inflow of scrap into yards will increase further towards February-end after winter in the US recedes.
The Davis Index for Dubai-origin containerised #1 HMS dropped by $17/mt to $283/mt cfr Nhava Sheva Friday. Dubai- origin #1 HMS traded in the range $280-285/mt cfr Nhava Sheva. HMS 1&2 (80:20) from South Africa traded at $285/mt cfr Nhava Sheva early this week.
The Davis Index for Turnings fell to $255/mt cfr Nhava Sheva from the prior week and the index for Busheling settled at $300/mt cfr Nhava Sheva.
Containerised P&S 5ft scrap traded at $290-295/mt cfr Nhava Sheva. West African HMS 1&2 (80:20) traded at $265-270/mt cfr Goa and cfr Mundra.
In the domestic market, finished steel demand remained moderate. The announcement of Indian budget for 2020-21, however, did not give finished steel demand an immediate push, say industry participants. Demand is likely to increase in the long term when infrastructure projects announced by the government commence.
A supply glut is likely to decrease prices of imported ferrous scrap further in the near term. With an international conference being held in India, some buyers are sellers are hoping to strike deals in person, said a trader.