Imported ferrous scrap offers continued to be strong in India despite a correction in the domestic scrap and sponge iron prices. Scrap importers limited bookings as mills preferred domestic scrap.
The gap between domestic scrap and the landed prices for imported material has been widened to Rs1,000/mt ($13.5/mt). Domestic scrap is priced at Rs25,500/mt del Mumbai consumer, and the landed prices for imported scrap is above Rs26,500/mt for HMS scrap offered $350/mt cfr Nhava Sheva. Imported prices have turned less viable thereby limiting trade volumes. Some buyers are cautious about the resurgence of COVID-19 cases and the related lockdowns in some regions.
In Turkey, imported scrap traded at $336-338/mt cfr Turkey. A strong appetite for imported scrap is likely to continue as many Turkish mills have billets and rebar order books filled till Jan-Feb, said traders. Suppliers thus focused on the Turkish demand, where major mills have announced price hikes of $15-18/mt for rebar on Monday.
The Davis Index for containerized shredded on Tuesday settled at $362.19/mt cfr Nhava Sheva, up by $2.19/mt from Tuesday. Offers were high and no confirmed trades reported. Suppliers from the US and UK continue to offer above $365/mt cfr Nhava Sheva, which is a two-year high, while Indian buyers are still aiming below $360/mt cfr. Shredded grade has become very expensive amid a global shortage, said a trader.
Traders from the UAE raised HMS offers amid active demand from Indian buyers. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $348/mt cfr Nhava Sheva, up by $3/mt from Monday. Offers for containerized #1 HMS without the cast and galvanized iron from Dubai were above $355-358/mt cfr Nhava Sheva on Tuesday, with a few deals reported at $355/mt cfr Nhava Sheva.
The Davis Index for US-origin HMS 1&2 (80:20) was at $347.14/mt cfr Nhava Sheva on Tuesday, up by $3.81/mt from Wednesday. Very limited offers for the grade in containers were above $348-350/mt cfr Nhava Sheva amid short supply depending on quality. There are no offers from the US and Australian bulk suppliers this week.
Steel prices might show some adjustment after a strong rally, however, imported ferrous scrap is expected to stay strong, according to market participants. In the export market, billet makers are targeting above $490-495/mt cfr SE Asia and China. A deal for 23,000mt cargo of Russian 125mm billet for February shipment was heard at $480/mt cfr Manila on Nov 18. No supplier is ready to offer bulk volume from India amid expectations of higher realizations in the domestic market. Chinese producers offered domestic billets at CNY3,580/mt ex-Tangshan, down CNY10/mt from a day prior on Tuesday.
Subcontinent
The Davis Index for containerized shredded, Tuesday, settled at $362.14/mt cfr India subcontinent, up by $2.15/mt from Monday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $345.82/mt cfr India subcontinent, up by $3.24/mt from Friday. Non-availability of containers pushed offers higher in anticipation of short supply and strong demand in the next few days.
($1=Rs74.00)