Indian imported ferrous scrap prices rose by $5/mt this week, in line with a rise in global ferrous scrap prices by around $10/mt. Rise in freight rates by $5-10/mt is also likely to push prices upwards in the coming days. 

 

Traders tried to push prices up amid increased freight charges, however, no mills were interested at present. The demand for finished steel slowed this week compared to the prior week.

The Davis Index for containerised shredded rose by $7/mt to $289/mt cfr Nhava Sheva from a week ago. Early this week, shredded traded at $285/mt cfr Nhava Sheva. Offers subsequently rose to $290-295/mt cfr Nhava Sheva but mills were reluctant to accept these levels and trades were thin late in the week. 

Mills are short of their March ferrous scrap requirements and are likely to increase bookings in the coming days. No major bulk cargo deal has been reported for over a month. Few mills opted for competitively priced domestic HMS scrap at Rs22,500/mt ex-works Mumbai and Chennai. 

  
Major shipping lines face shortage of empty containers to transport and are likely to increase freight rates in coming days. Traders will now have to either secure empty containers or or book space on vessals at higher prices. Freight from Europe and UK was quoted at $250 for 20ft containers, up by $10 compared earlier levels by one of the leading shipping lines. Others are likely to follow suit in coming days. 

Davis learned from a source at MSC shipping line that Chinese coronavirus lockdown has extended resumption of shipping activities from China for two weeks at the minimum. Shipping line business has been impacted by shortage of empty containers globally. Many containers are lying at Chinese ports. This situation will be regularised only after mid-March. 

 

The Davis Index for Dubai-origin containerised #1 HMS rose by $3/mt to $286/mt cfr Nhava Sheva on Friday. Early this week, Dubai origin #1 HMS traded at $285/mt cfr Nhava Sheva. A mix of P&S and HMS 1 from Dubai sold for $305/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 settled at $269/mt cfr Nhava Sheva, up $14/mt from the prior week. Traders walked away from low bids of $260-265/mt cfr for Turning scrap amid tight supply. The index for Busheling settled at $305/mt cfr Nhava Sheva with some suppliers unwilling to offer below $310/mt cfr Nhava Sheva. HMS 1&2 (80:20) from UK and Europe traded at $270/mt cfr Nhava Sheva. 

 

Containerised P&S 5ft scrap offered at $300-305/mt cfr Nhava Sheva, up $5/mt from the prior week. West African HMS 1&2 (80:20) traded at $270-275/mt cfr Goa and cfr Mundra.

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