Indian imported scrap prices rose by $10-12/mt from the prior week. India’s finished steel demand remained weak despite an uptick in the automotive demand. Few steel mills continued their restocking activities ahead of New Year holidays in the west.
The Davis index for shredded scrap moved up to $295/mt cfr Nhava Sheva, up by $11/mt from a week ago. Exporters offered shredded at $295-300/mt cfr for January deliveries.
Supplier are confident that the next trades for containerised shredded scrap will be at around $300/mt cfr Nhava Sheva even as mills continue to bid at $292-294/mt.
In other locations, it was a similar story of offers moving significantly higher than transaction prices. After shredded sold into Vizag at $299/mt cfr early in the week, offers rose to $305-308/mt cfr.
For other grades, the price uptick was muted by the overall weakness in Indian demand. The Davis index for Dubai-origin HMS 1&2 (80:20) in containers rose by $4/mt to $274/mt cfr Nhava Sheva Friday. HMS 1&2 (80:20) from South Africa moved up to $276-278/mt cfr Nhava Sheva while #1 HMS from Dubai traded at $280/mt cfr.
The Davis index for European turnings scrap rose to $253/mt cfr Nhava Sheva and $262/mt cfr Chennai.
Domestic recycling market in India was upbeat following the passing of the Recycling of Ship Bill 2019 in the parliament. India aims to double its recycling tonnages to 60pc. Of 131 scrapyards in India, 91 are equipped with new standards that could increase India’s recycling capacity to around 450 vessels per annum.
The exchange rate of Indian Rupee against US dollar dropped below 71 levels. India’s domestic scrap prices remained rangebound at around INR21,000-21,500/mt ex-yards offering a competitive price advantage against the imported scrap.