Indian ferrous scrap importers booked few HMS scrap containers this week. Demand is recovering as mills have started consuming their stocked inventories. Piled-up consignments at ports have almost cleared. Still, many mills are in a wait-and-watch mode due to limited availability of labourers and uncertain demand, especially since monsoon seasons are close.
The Davis Index for containerised shredded settled at $280/mt cfr Nhava Sheva, unchanged from Thursday, but up by $7/mt from the prior week. Bids for shredded were at $270-275/mt cfr Nhava Sheva. But offers for the UK and European-origin shredded scrap in containers were at $285/mt cfr Nhava Sheva. Buyers were not keen to book at those prices.
Most importers are still away from buying for over two months now. Mills are still concerned with the rising COVID-19 cases and resulting unavailability of workers. But a shortage of domestic scrap could encourage traders to take a position for July-August shipments, according to a trader. Scrap generation rate remains low with automobile production, demolition and ship recycling working at a subdued pace.
The daily Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $260/mt cfr Nhava Sheva, up by $1/mt from the prior day. The daily index for US-origin HMS 1&2 (80:20) was at $255/mt cfr Nhava Sheva, unchanged.
Indian steel mills have booked scrap from Australia, South Africa and Latin America at $250-255/mt cfr Nhava Sheva and $255-260/mt cfr Chennai.
South African HMS 1&2 (80:20) traded at $250-255/mt cfr Nhava Sheva, up by $5/mt from the prior week. Brazilian HMS 1&2 (80:20) traded at $240-245/mt cfr Nhava Sheva and $245-250/mt cfr Chennai.
Offers for the UK and Europe-origin HMS 1&2 (80:20) were at $245-250/mt cfr Nhava Sheva, up by $10/mt from the prior week.
Australia-origin HMS 1&2 (80:20) traded at $255-260/mt cfr Nhava Sheva and Mundra, up by $5/mt from the prior week. A rise in the demand from east Asian buyers gave Australian offers a lift this week.
In Goa, mills booked West African HMS 1&2 (80:20) at $240-245/mt cfr Goa.
The index for busheling in containers rose by $5/mt to $285/mt cfr Nhava Sheva and the index for P&S increased by $3/mt to $273/mt cfr Nhava Sheva, from the prior week.
The upcoming monsoon season from mid- June could weigh down finished steel demand, as construction activities remain hit.