Imported ferrous scrap buyers in India were reluctant to book material amid weak domestic steel demand. Steel prices have hit a two-month low pressurizing ferrous scrap demand. Mills lowered their bids by over $5/mt on Thursday amid falling semi-finished and finished steel prices. Trades for HMS from destinations other than UAE remained tepid.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Thursday, dropped to $476/mt cfr Nhava Sheva, down $4/mt. Offers for HMS #1 from Dubai fell by $8/mt from Monday to $490/mt cfr Nhava Sheva. Prices dropped by $20-25/mt from the short-term peak reached around mid-May.
Steel furnaces in Western India are struggling due to weak demand. Traders and indenters are delaying purchases owing to a cash crunch. Domestic uncertainty due to the pandemic and the sudden drop in Chinese steel and iron ore prices weighed down on buyers’ sentiments.
Rebar prices dropped by over Rs1,500/mt over the last few days in Mumbai and Jalna, the two major markets in Maharashtra. Following weak demand, some traders decided to liquidate arriving material.
Offers for containerized shredded from EU/UK dropped in the range at $510-515/mt cfr Nhava Sheva. Secondary steelmakers, however, were not interested above $505-508/mt cfr Nhava Sheva. Major alloy makers are largely away from the market.
The Davis Index for containerized shredded settled at $507.5/mt cfr Nhava Sheva, down $3.75/mt from Wednesday. The index for US-origin HMS 1&2 (80:20), Thursday, settled at $486.25/mt cfr Nhava Sheva, down $3.75/mt as bids lagged on weak domestic fundamentals.
In China, domestic billet prices on Thursday recovered by CNY30/mt to CNY4,730/mt ex-Tangshan, inclusive of 13pc VAT. The government is trying to stabilise steel prices in China to offer relief to manufacturers and sustain the momentum of economic growth.
Subcontinent
The daily Davis Index for containerized shredded, Thursday, settled at $511.4/mt cfr Indian subcontinent, down by $3.28/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $489.86/mt cfr Indian subcontinent, down $5.39/mt on Thursday.
($1=Rs72.75)