Imported ferrous scrap prices in India rose on Wednesday despite sluggish demand.
Market opinions about the price trend in the coming days were diverse as end-user demand remains slow. The anticipation of the automotive sector picking-up in the festive season and subsiding impact of monsoon kept hopes for steel trades to increase alive. Thus, limited trades for US-origin HMS1&2 (80:20) were heard at $292/mt cfr Nhava Sheva. Few mills are still waiting for prices to fall before booking more material.
In Turkey, steel mills were heard to have booked deep-sea HMS 1&2 (80:20) cargo at $288/mt cfr Turkey shredded at $293/mt cfr.
In the bulk market, offers for HMS 1&2(80:20) were in the range of $295-300/mt cfr Kandla.
Steelmakers in the southern and western parts of the country were offering billets in overseas markets at $415-420/mt fob India. But buyers in China and Southeast Asian markets were unwilling to pay over $405/mt fob India or $435-440/mt cfr tells a buyer from Southeast Asia.
A major trader believes imported ferrous scrap prices are likely to rise since mills are expected to begin bookings for October deliveries in the coming days. After an uptrend in Japanese scrap export prices, US suppliers also looked to raise offers in Asian markets, mainly Taiwan. This is likely to have a bearing on ferrous scrap import prices in India.
The Punjab state government has canceled licenses of traders citing pollution concerns. Thus buyers would be forced to purchase domestic scrap for two weeks at the minimum, till the situation normalizes, a Punjab-based steelmaker told Davis Index.
The daily Davis Index for containerized shredded inched up by $3.5/mt to $311/mt cfr Nhava Sheva. Offers for UK-origin containerized shredded were in the range of $311-313/mt cfr Nhava Sheva and Mundra with few deals heard at lower end of the price range.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $293/mt cfr Nhava Sheva, up by $1.57/mt from Tuesday. Limited deals for Dubai-origin HMS 1&2 (80:20) were at $293/mt cfr Nhava Sheva.
Trades for HMS 1&2 (80:20) from Australia and Brazil were reported at $290/mt cfr Nhava Sheva. West African suppliers are offering the grade at $275/mt cfr Chennai.
The index for US-origin HMS 1&2 (80:20) settled at $293/mt cfr Nhava Sheva, up by $4/mt with trades also heard at $292/mt cfr Nhava Sheva.
($1=Rs74.23)