Indian steel mills Thursday raised bids for containerized imported scrap to strikes deals amid indications of strengthening global markets. Freight rates for containers heading to India have remained high which in turn has pushed up the landed cost of imported scrap. Buyers actively resumed trades as mills increased production rates in line with gradual improvement in economic activities. A jump in Indian metal stocks indicating positive sentiments for the sector also boosted physical trades.
The Davis Index for containerized shredded on Thursday settled at $315.71/mt cfr Nhava Sheva, up $0.77/mt from Wednesday. Trades for shredded reported at $315-316/mt cfr Nhava Sheva. Australian and US-origin suppliers turned active on improved demand from Indian buyers. A major stainless steel producer in Southern India bought over 10,000mt ferrous scrap in containers this week.
Demand from Southern India, which was quiet since the COVID-19 outbreak, showed signs of recovery. Most mills have resumed production and started inquiries for imported ferrous scrap. A mill bought Australia and the US-origin shredded at $322/mt cfr Chennai. Supplies are expected to remain tight in November as December has been traditionally a shorter month. The domestic demand in the US market is expected to stay flat to up in November.
The Davis Index for HMS 1&2 (80:20) from UAE, Thursday, settled at $304/mt cfr Nhava Sheva, up by $2/mt from Wednesday, with few trades reported at index price. A North-based steelmaker booked HMS 1&2 (80:20) at $305/mt cfr Nhava Sheva, up over $10/mt than the prior week. Trades for containerized #1 HMS from Dubai were above $305-310/mt cfr Nhava Sheva. Offers stayed above $310/mt cfr Nhava Sheva against bids of $300-305/mt cfr Nhava Sheva.
The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) inched up by $0.75/mt to $290.25/mt cfr on Wednesday amid higher bids and offers. Trades on Thursday resumed at further higher prices as mills restock materials for November deliveries. In the bulk markets, offers for HMS 1&2 (80:20) were still at $315-320/mt cfr Kandla, but buyers refused to book materials at such high levels.
Improved trades and restocking activities resulted in subcontinent indexes moving up further. The Davis Index for containerized shredded, Thursday, settled at $308.18/mt cfr India subcontinent, up by $0.75/mt from Wednesday. The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $297.18/mt cfr India subcontinent, up by $2.34/mt from Wednesday.