Imported ferrous scrap and cast-iron rotors’ prices in India remained firm despite limited trades. On Wednesday, softening domestic fundamentals and sluggish China market pressured buying interest. Most buyers were waiting for more clarity on the global price trend as opinions were divided about future direction.
The weekly Davis Index for cast iron, rotors, and drums, Wednesday, settled at $520/mt cfr Nhava Sheva, up by $2/mt with a few deals. Most offers were above $525-530/mt cfr Nhava Sheva. Imported cast iron scrap was offered in the domestic market in Mandi Gobindgarh at Rs38,300-38,500/mt delivered mills on Wednesday. Traders were unable to procure material at lower prices due to tight availability in supplier countries and container shortages.
The daily Davis Index for containerized shredded, Wednesday, rose by $1.69/mt to settle at $529.75/mt cfr Nhava Sheva. Offers were firm in the range $535-540/mt cfr Nhava Sheva. Indian buyers raised bids but still lagged at $525-530/mt cfr Nhava Sheva. On Wednesday, softening Chinese futures pulled sentiment down.
Offers for #1 HMS from the UAE were at $500-505/mt cfr Nhava Sheva. The daily index for UAE-origin HMS 1&2 (80:20) dipped by $5/mt to $491/mt cfr Nhava Sheva with bids reported at $485-490/mt cfr Nhava Sheva. Mills want prices to drop by $5-10/mt before they book materials as they found current levels high.
In Alang, melting scrap offers increased by Rs200/mt to Rs37,200/mt ex-yards. In Mumbai, rebar prices have been flat since last three days. Rebar traded at Rs47,900/mt ex-works. In Mandi Govindgarh, ingot prices dropped by Rs1,100/mt on weak demand. Mixed domestic cues kept deals limited for imported ferrous scrap on Wednesday. Lockdown restrictions are being relaxed in many parts of India and vaccination rates have picked-up.
The daily Davis Index for US-origin HMS 1&2 (80:20) settled at $497.5/mt cfr Nhava Sheva, down by $2.5/mt. However, limited deals were reported for the US and UK-origin HMS in India as most feel prices have already reached a peak and could soften to match buyers’ expectations.
In China, domestic billet deals were reported at $4,940/mt ex Tangshan, down CNY80/mt from Monday inclusive of VAT. Iron ore prices for ferrous content 62pc droppe to $214/mt cfr China, losing almost $8/mt in a day. This could pressure Asian billet and HRC export prices. Bearish sentiment in the export market could further impact raw material buying appetite for Indian buyers.
The daily Davis Index for containerized shredded, Wednesday, settled at $534.15/mt cfr Indian subcontinent, down by $0.24/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $503.88/mt cfr Indian subcontinent, down by $1.02/mt. Container supply-demand imbalance due to restrictions at Chinese ports has led to a possibility of another round of freight hike by major shipping lines.