Indian ferrous scrap importers remain positive about the demand and prices for imported scrap, though a few buyers were waiting to see if the sharp price hike in the bulk market has been absorbed or not before booking  any significant volume.

On the other hand, domestic Sponge iron and iron ore prices in India have hit an all-time high, enabling suppliers to demand high price for imported scrap. Mills will soon have no option but to import ferrous scrap at high prices, participants said.    

 

In Turkey, the index for US-origin HMS 1&2 (80:20) on Tuesday was at $325/mt cfr Turkey with negotiations on Wednesday in the range $325-330/mt cfr Turkey. A strong appetite for imported scrap is likely to continue as many orders were received for billets and rebar by Turkish mills till January. Suppliers, thus focused on catering to the Turkish demand.  

 

The Davis Index for containerized shredded on Wednesday settled at $353.21/mt cfr Nhava Sheva, up by $0.71/mt from Tuesday, though there were no confirmed trades reported at these levels. Firm offers on Wednesday from the US and UK origins were in the range $355-360/mt cfr Nhava Sheva. These offer levels were last seen in December 2018. 

 

We anticipate, prices to stay ‘flat to up’ amid recovering production rates in every country until the Lunar new year holidays in China, said a trader.

 

Traders from the UAE raised HMS offers amid active demand from Indian buyers. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $336/mt cfr Nhava Sheva, up by $6/mt from Tuesday. Offers for containerized #1 HMS without the cast and galvanized iron from Dubai were above $340-345/mt cfr Nhava Sheva on Wednesday, with a few deals reported at $340/mt cfr Nhava Sheva.  

 

The Davis Index for US-origin HMS 1&2 (80:20) was at $336/mt cfr Nhava Sheva on Wednesday, up by $1.83/mt from a prior day. Offers for the grade in containers were above $335-340/mt cfr Nhava Sheva amid short supply depending on quality.  

There are no offers from the US and Australian bulk suppliers. Indications for HMS 1&2 (80:20) in bulk were at $350-355/mt cfr Kandla, with buyers resisting to pay above $345/mt cfr Kandla. Bulk demand could recover for January shipments soon if domestic demand turns bullish.  

 

In the export market, billet makers are targeting not lower than $490-495/mt cfr SE Asia and China with no deals to report at those levels yet. No supplier is ready to offer bulk volume from India amid expectations of higher realizations domestically. Chinese producers offered domestic billets at CNY3600/mt ex-Tangshan, up CNY20/mt on Wednesday.  

 

In line with rising ferrous scrap prices, the weekly Davis Index for cast iron, rotors, and drums on Wednesday settled at $363/mt cfr Nhava Sheva, up by $9/mt with containerized trades reported in the range $360-365/mt cfr Nhava Sheva. Few offers were even at $370/mt cfr Nhava Sheva following global cues. Non-availability of containers pushed suppliers’ offers high in anticipation of short supply and strong demand in the future.

 

Subcontinent

The Davis Index for containerized shredded, Wednesday, settled at $355.89/mt cfr India subcontinent, up by $0.55/mt from Tuesday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $337.44/mt cfr India subcontinent, up by $2.14/mt from Wednesday.  

 

($1=Rs74.45)

 

 

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