Mills in India booked imported ferrous scrap only to meet their immediate melt requirements. Most preferred domestic scrap, especially HMS. Sentiment remains positive in India as market participants expect trading to increase as the monsoon recedes. Increasing production could lead to a downward adjustment in steel and ferrous scrap prices.
The daily Davis Index for containerized shredded, Friday, dipped by $1.25/mt to $525/mt cfr Nhava Sheva. The index was down by $6.25/mt from last Friday. Interest for shredded remained weak even from regular alloy makers. However, amid low inventory at Indian mills traders keep offers of India higher than other subcontinental markets.
The daily Davis Index for UAE-origin containerized HMS 1&2 (80:20) was flat at $475/mt cfr Nhava Sheva. The index was down by $3/mt from prior Friday. With the COVID-19 situation appearing to be a bit under control, hopes of active trades emerged in the market. For UAE-origin #1 HMS offers rose above $490/mt cfr Nhava Sheva but buyers refused to accept those levels.
The daily Davis Index for US-origin containerized HMS 1&2 (80:20) dropped by $2.5/mt to $480/mt cfr Nhava Sheva on Friday. Market participants await clarity on domestic monthly settlements for September in the US markets.
The Davis index for containerized P&S was at $530/mt cfr Nhava Sheva, down $3/mt from last Friday, while the index for #1 busheling dropped by $3/mt to $543/mt from Aug 20. Inquiries for prime grades remained scarce as most mills found it unattractive.
Domestic melting scrap prices in Alang dropped as yards liquidated piled up inventories. Melting scrap traded at Rs35,900/mt ex-Alang, down Rs300/mt from Thursday, but Rs100/mt from prior Friday. In Mumbai, the asking prices for rebar dropped by Rs300/mt on Friday to Rs49,200/mt ex-works, also rebar prices were lower by Rs1,200/mt than prior Friday.
In Mandi Gobindgarh, ingots traded at Rs44,200/mt ex-works Friday, marginally down by Rs300/mt from Thursday, while down Rs1,600/mt from prior Friday. Demand for rebar remained low in North India. In Chennai, mills preferred domestic scrap and trades for imported scrap remained scarce.
International iron ore futures recovered on Friday. For Fe 62pc daily spot price recovered by over $16/mt from a week and by $3.5/mt to $153.5/dmt cfr North China on Thursday. Finished steel futures were, however, mixed on Friday following low inventory data combined with production cuts.
The daily domestic billet price in China on Friday was unchanged at CNY4,950/mt ($764/mt) ex-Tangshan inclusive of VAT. Billet prices in China recovered by CNY70/mt from last Friday. Offers for imported billet recovered in China following trades in the Philippines at $675-680/mt cfr. From India, billet export offers were at $600-605/mt fob basis.
Supply shortage for coking coal and weak export keep Chinese steel demand slow.
The daily Davis Index for containerized shredded on Friday, settled at $523.75/mt cfr Indian subcontinent, down by $3.38/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $486.15/mt cfr Indian subcontinent, down by $2.6/mt.