Indian imported ferrous scrap prices stayed firm on Thursday and prices are expected to maintain an uptrend in line with the rise in Turkey’s bulk scarp import prices. Most suppliers withdrew low-priced offers. Few mills who had depleted their scrap inventories booked imported scrap but preferred short delivery destinations like UAE and Australia.
Most mills were in a mood to wait for a few more days and were resisting higher offers from suppliers. Expectations of a recovery in auto sales ahead of festivals encouraged scrap traders to commit for some deals but the ship breaking market in Alang is witnessing a slow down in buying activity.
In Turkey, the daily US-origin HMS 1&2 (80:20) Wednesday settled at $295.53/mt cfr Turkey while trades on Thursday closed at $299-300/mt cfr Turkey.
The daily Davis Index for containerized shredded Thursday remained unchanged at $318/mt cfr Nhava Sheva from Tuesday. UK-origin containerized shredded were offered at $320-325/mt cfr Nhava Sheva and Mundra on Thursday.
Indian alloy makers are likely to book shredded and could pay $320-322/mt cfr Nhava Sheva amid tight supply. Traders bought more containers at $315-320/mt cfr Nhava Sheva in anticipation of strong demand in mid-September.
Mills stayed away from bulk trades. After the latest price rise in Turkey, the US-origin HMS 1&2 (80:20) offers for Kandla are at $320-325/mt cfr but buyers were aiming below $315-320/mt cfr Kandla.
Steel exports from India have lost momentum but SE Asia and China-based billet importers have raised bids and paid upto $445-450/mt cfr Philippines. Announcement of a cap on export promotion scheme (Merchandise Exports from India Scheme or MEIS) on shipments at Rs20mn or ($0.27mn) for exports between Sept 1 to Dec 31, is likely to lower exports amid a loss of Rs600/mt on exports during the period. Most mills might opt to focus on domestic demand in the coming days, said a steelmaker.
The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $303.82/mt cfr Nhava Sheva Thursday, down by $0.51/mt from Wednesday. Deals for Dubai-origin HMS 1&2 (80:20) were at $303-305/mt cfr Nhava Sheva, up $3-5/mt from Friday. Suppliers refused to accept lower bids of $290/mt cfr Nhava Sheva. #1 HMS scrap from Dubai yard was traded at $308-310/mt cfr Nhava Sheva on Wednesday.
The index for US-origin HMS 1&2 (80:20) Thursday settled at $303/mt cfr Nhava Sheva, down by $1/mt from Wednesday. Bids from a few buyers reported at $295-300/mt, however, lack of offers resulted in no trades being materialised in this range.
Trades for HMS 1&2 (80:20) from Australia and Brazil were reported at $300/mt cfr Nhava Sheva and $305/mt cfr Chennai depending on quality. Turning was offered at HMS 1&2 (80:20) at $275-280/mt cfr Nhava Sheva against the prior confirmed deals at $255-260/mt cfr to traders. NP Busheling scrap was traded at $335/mt cfr Vizag with offers at above $340-345/mt cfr Vizag on Wednesday.
The Davis Index for containerized shredded, Monday, settled at $309.9/mt cfr India subcontinent, up by $0.9/mt from Tuesday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $296.2/mt cfr India subcontinental, largely stable from $296.5/mt cfr India subcontinent on Wednesday.