Mills shied away from trades amid firm imported ferrous scrap offers for Indian buyers. But traders were upbeat on increasing inquiries amid a steady drawdown of scrap inventories at mills. Market participants expect a resumption of active trades in the next few days if the COVID-19 situation remains under control in most parts of India.
The weekly Davis Index for cast iron, rotors, and drums, Wednesday, settled at $503/mt cfr Nhava Sheva, down by $5/mt from Aug 4. Sellers’ expectations are still at $510-515/mt cfr Nhava Sheva while buyers were willing to accept below $500-505/mt cfr Mundra and Nhava Sheva. Softening prices in the supplier countries also weighed on overseas offers of cast iron rotors.
In the domestic market, cast iron toka scrap traded in Mandi Govindgarh at Rs35,800/mt on Wednesday, while imported cast scrap was at Rs36,700-36,800/mt ($493-494/mt) delivered mills.
The daily Davis Index for containerized shredded, Wednesday, unchanged at $525/mt cfr Nhava Sheva. But pressurized by lower margins some traders till targeted above $530-535/mt cfr. A decline in prices of low and medium grades in supplier countries pulled down bids as buyers were not desperate to book materials.
The daily Davis Index for UAE-origin HMS 1&2 (80:20) inched up $2/mt to $475/mt cfr Nhava Sheva on recovering demand. For the UAE-origin #1 HMS, offers unchanged at $485-490/mt cfr Nhava Sheva. While trades for the same grade heard at significantly higher levels of $535/mt cfr Chattogram and above, leading traders to divert supplies to Bangladesh.
Weak billet export demand from the ASEAN and China markets pull prices down to around $690-705/mt cfr China. Indian mills were disappointed by bids of below $615-630/mt fob.
US sellers held offers as demand for HMS recovered. The Davis Index for US-origin HMS 1&2 (80:20) flat at $480/mt cfr Nhava Sheva.
Prices for domestic HMS 1&2 (80:20) at Rs35,000/mt ($471/mt) delivered Mumbai on Wednesday. Imported HMS 1&2 (80:20) offers remained firm as supplies tightened.
Trading in Alang’s shipbreaking market remained shut due to the extension of transporters’ strike. In Mumbai, the asking prices for rebar on Wednesday recovered earlier correction to reach Rs50,000/mt ex-works. In Mandi Gobindgarh, ingot traded at Rs45,400/mt ex-works, up Rs200/mt on gradual recovery in rebar demand.
The US government has passed a bill of $3,500bn infrastructure investment which bodes well for the domestic steel industry. With expectations of stability in domestic steel prices, steel futures in China recovered by 4-5pc on Wednesday. On Tuesday, international iron ore Fe 62pc prices dropped by $9/dmt to $162.2/dmt cfr North China as compared to Monday.
The daily domestic billet price in China rose by CNY30/mt to CNY5,110/mt ($788/mt) ex-Tangshan inclusive of VAT on Wednesday.
The daily Davis Index for containerized shredded on Friday, settled at $528.25/mt cfr Indian subcontinent, down by $0.11/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $488.25/mt cfr Indian subcontinent, down by $0.75/mt.
On the New York to South Asia route, normalized weekly container freight rates remained elevated amid tight availability.