Indian imported scrap prices rose marginally in line with high-priced bulk cargoes sold to Turkey this week. Most steelmakers in India struggled with weak finished steel demand and delayed scrap buying. Market participants are upbeat about a pick up in the steel demand from the automotive sector and resumption of construction activities as monsoon subsidies. Despite demand concerns, the strengthening of the Indian rupee against the US dollar supported importers during the week.
In Turkey, the Davis Index for US-origin HMS 1&2 (80:20) rose by $7-8/mt from August 21 to settle at $286.8/mt cfr Turkey, while over a month’s period prices have risen by $15/mt hitting a seven-month high. Stronger demand for rebar has lifted sentiments, said a steelmaker.
Indian mills were in no mood to compete with Bangladeshi mills as they resumed bulk inquiries. Offers for HMS 1&2(80:20) were in the range $295-300/mt cfr Kandla. No trades were reported. Indian suppliers in South and West coast offered billet for export at $420/mt fob India, however, no buyers in China and Southeast Asian markets were interested in deals above $405/mt fob India or $435-440/mt cfr SE buyer.
The daily Davis Index for containerized shredded Thursday settled at $313/mt cfr Nhava Sheva, up $2/mt from Wednesday. Offers for UK-origin containerized shredded were at $315/mt cfr Nhava Sheva and Mundra but buyers were not keen to strike a deal. Importers said mills would accept higher offers, but they are holding scrap purchases as of now.
The daily Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $295.14/mt cfr Nhava Sheva, up $2.14/mt from Wednesday. Deals for Dubai-origin HMS 1&2 (80:20) were at $293-295/mt cfr Nhava Sheva. Suppliers refused to accept lower bids of $285-287/mt cfr Nhava Sheva. Pakistani buyers were still paying higher prices and Indian mills continue to lose tonnages.
Trades for HMS 1&2 (80:20) from Australia and Brazil were reported at $290/mt cfr Nhava Sheva depending on quality. West African suppliers are offering HMS at $275/mt cfr Chennai.
The index for US-origin HMS 1&2 (80:20) settled at $295/mt cfr Nhava Sheva, up $2/mt from Wednesday. Bids remained low while trades concluded at the index price following an indication of strengthening in the US domestic market in September.
In the shipbreaking markets, resumption of operations at Gujarat’s Sachana yard kept market upbeat. Internationally offers jumped by $20-25/ldt over the last week. Scrapped containers and tankers were offered at $350-360/ldt cfr Alang as demand showed signs of recovery after a long gap.
Subcontinent
The Davis Index for containerized shredded, Thursday, settled at $305.5/mt cfr India subcontinent, up marginally from $304.10/mt cfr India subcontinent Wednesday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $287.3/mt cfr, up from $286.3/mt cfr India subcontinent on Thursday.
($1=Rs73.89)