Imported ferrous scrap prices in India were unchanged on Tuesday. But softening domestic steel prices and weak cues from China and Turkey could weigh down firm offers in the coming days. A drop in rebar prices by around Rs600/mt in Mumbai and a decline in Mandi Govindgarh ingot by Rs500/mt in a day dampened sentiment for imported scrap.
The daily Davis Index for containerized shredded settled unchanged at $511.25/mt cfr Nhava Sheva. A few traders and suppliers were hopeful for recovery in India, however, global uncertainty led to limited deals. Should prices for finished steel drop by another $20-25/mt, India could be out of the market for imported scrap, believe traders.
The daily Davis Index for US-origin HMS 1&2 (80:20) settled unchanged at $485/mt cfr Nhava Sheva. With the rise in domestic scrap prices in the US, the gap between high-grade materials like #1 busheling and HMS 1&2 (80:20) is expected to widen by $15-20/mt from $70-75/mt at present.
The daily index for UAE-origin HMS 1&2 (80:20) rose by $2/mt to $477/mt cfr Nhava Sheva. Trades were reported for #1 HMS in the range of $480-485/mt cfr Nhava Sheva. With the relaxations in COVID-19-related restrictions, economic activities in many states could pick up in the coming days. The supply of oxygen for industrial use has started to ease which could increase the pace for fabrication and gas cutting activities.
On Tuesday, melting scrap offers in Alang inched down by Rs100/mt from Monday to Rs37,400/mt ex-yards.
In China, weak futures pressured steel prices for the second day. Rebar in Shanghai dropped by CNY54/mt from Friday to CNY5,154/mt ex-works. Domestic billet prices remained unchanged at CNY4,940/mt ex-Tangshan. Iron ore ferrous 62pc were at $202/mt cfr China levels on Monday, down from $210/mt cfr late last week, indicating a softening sentiment in the Asian billet export market.
The Davis Index for containerized shredded, Tuesday, settled at $515.46/mt cfr Indian subcontinent, down by $0.04/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $490/mt cfr Indian subcontinent, up by $0.13/mt.