Imported scrap prices in India continued to rise on strengthening global cues. Declining supply in many overseas markets and a bullish outlook for domestic steel demand aided the price rise. Trading is expected to gain momentum in the coming days.
Mills are buoyed by the infrastructure spending announced in the budget as it is expected to keep demand firm.
The daily Davis Index for containerized shredded, Tuesday, settled at $431.25/mt cfr Nhava Sheva, up by $12.75/mt. The index rose by $35/mt from February 9. In Pakistan, shredded trades were reported at $435-440/mt cfr Port Qasim. Sellers are thus optimistic about achieving these levels in India.
On Tuesday, the prices for shipbreaking scrap Alang continued to rise and increased by Rs600-800/mt from Monday’s close to Rs28,700-28,800/mt ex-Alang. Ingot prices in Mandi Gobindgarh rose by Rs400/mt from Monday to reach Rs38,000/mt ($523/mt) ex-works. Recovery in construction steel demand in Mandi, Gujarat, and Mumbai encouraged mills to book imported ferrous scrap.
On Tuesday, Dubai-origin HMS #1 and P&S were offered in the range of $400-405/mt cfr Nhava Sheva. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $395/cfr Nhava Sheva, up by $20/mt. Secondary steel mills revised their bids to secure materials.
The daily Davis Index for US-origin HMS 1&2 (80:20), Tuesday, rose by $13.13/mt to $395.63/mt cfr Nhava Sheva. For US suppliers, #1 HMS deals were workable only above $405-410/mt cfr Nhava Sheva. UK-origin sheared scrap was offered at $400-405/mt cfr Nhava Sheva.
China could resume purchases of ferrous scrap after the New Year holidays in late-February from various supplier countries on a bullish demand outlook. Imported billet prices jumped by $10-15/mt to $555-560/mt cfr Southeast Asia. Iron ore prices were at $166.8/mt cfr Qingdao, up from $164.5/mt cfr levels before China closed for the new year holidays.
The daily Davis Index for containerized shredded, Tuesday, settled at $437.71/mt cfr India subcontinent, up by $17.05/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $400.52/mt cfr India subcontinent, up by $13.81/mt. In March, global freight rates would increase again, keeping prices for imported scrap high.