Imported ferrous scrap prices in India rose following global cues. Export orders for semi-finished and finished steel have also increased. Many mills resumed trades for imported scrap as inventories have gone down and the movement of domestic scrap supply remains hit by pandemic-related restrictions.
The daily Davis Index for containerized shredded, Friday, rose by $3.79/mt to settle at $524.36/mt cfr Nhava Sheva. Offers went up to $530/mt cfr Nhava Sheva following active trades in Pakistan. From the prior Friday, the index rose by $14.36/mt. Availability of offers for containerized shredded has dropped amid bulk purchases in Turkey.
Fuelled by high domestic realization in the US, the daily Davis Index for US-origin HMS 1&2 (80:20) settled at $491.25/mt cfr Nhava Sheva, up by $1.25/mt. However, limited deals were reported for the US and UK-origin HMS as most preferred to buy UAE-origin material.
On Friday, melting scrap offers in Alang jumped by Rs700/mt to Rs37,500/mt ex-yards. Normalized supply of oxygen for industrial use boosted gas cutting activities in the shipbreaking markets.
In Chennai, #1 HMS from the UAE was sold at $505/mt cfr on Friday. The daily index for UAE-origin HMS 1&2 (80:20) rose by $7/mt to $490/mt cfr Nhava Sheva and by $17/mt from prior Friday.
The indexes for P&S and #1 busheling were at $537/mt and $559/mt cfr Nhava Sheva, respectively, both up by $14/mt. However, mills remained largely away from these grades in search of lower-priced scrap.
In China, concerns around inflation have eased as it is expected to remain under control. This boosted investors’ sentiment and steel futures continued their upward movement. Domestic billet prices also climbed up by CNY30/mt to CNY5,010/mt ex-Tangshan.
Supply remains tight from the Brazilian. Prices for iron ore with ferrous content 62pc have surpassed $217/mt cfr China.
Chinese mills booked 40,000mt of billets from Vietnamese steelmaker Hoa Phat at $695/mt cfr China, which boosted Asian export sentiments. Indian mills targeted billet export offers above $650/mt fob India. Removal of import duty on billet imports in China encouraged sellers.
Subcontinent
The daily Davis Index for containerized shredded, Friday, settled at $528.55/mt cfr Indian subcontinent, up by $4.42/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $501.27/mt cfr Indian subcontinent, up by $4.41/mt.
($1=Rs72.96)