Indian mills were largely away from imported ferrous scrap trades due to wide disparity between bids and offers and the availability of competitive alternatives. A decline in Turkish bulk scrap prices prompted Indian mills to stay away and eye a $15-20/mt before resuming trades, said importers.
Indian currency appreciated to a six-month high on Wednesday against the US dollar. On Wednesday, Indian rupee was below Rs72.90 against the dollar compared to Rs73.3 a week ago.
The Davis Index for containerized shredded, Wednesday, settled at $422.5/mt cfr Nhava Sheva, down by $8.21/mt from Monday. Most buyers stayed away from shredded bookings citing non-workable offers. Few alloy makers sought the grade at a target price of $420-425/mt cfr Nhava Sheva. Secondary steelmakers are unwilling to bid above $400/mt cfr Nhava Sheva levels.
A few traders attempted to raise their asking rates by $10-15/mt on Monday from Friday’s levels, but sentiments reversed again on Wednesday. Trades expect Turkish bids for HMS 1&2 (80:20) to drop to $400-410/mt cfr Turkey, which would be an $80/mt drop in three weeks.
The Davis Index for UAE-origin HMS 1&2 (80:20), Wednesday, settled at $346/cfr Nhava Sheva down by $4/mt from Monday. After a holiday on account of Republic Day on January 26, buyers were reluctant to resume trades on Wednesday seeking clarity on price direction. Dubai origin HMS #1 was offered at $370-380/mt cfr Nhava Sheva on Wednesday, while a few distressed sellers offered material at $340-350/mt cfr Nhava Sheva.
Australian and the European yards continued to offer the grade at $400/mt cfr Chennai in containers, however, buyers resisted these offers due to long transit period and weak domestic sentiment.
In China, steel prices remained bearish amid lull ahead of New Year Holidays. Spot iron ore prices fell to $164.5/mt cfr China for Fe content 62pc, down $4/mt amid easing supply. On Wednesday, Q235 150mm square billets prices in China gained CNY30/mt from Monday to traded at CNY3,860/mt ex-works Tangshan including 13pc VAT. Indian mills looked to sell billets overseas at $550-560/mt fob India amid a decline in the domestic prices.
The daily Davis Index for containerized shredded, Wednesday, settled at $417.01/mt cfr India subcontinent, down by $9.02/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $374.01/mt cfr India subcontinent, down by $8.75/mt. Improved container availability held freight rates stable this week, while bids for HMS scrap in the subcontinent were under pressure amid weak domestic fundamentals.