Imported ferrous scrap buyers in India showed a willingness to raise bids as demand showed signs of recovery. Relaxation in lockdown restrictions in many major states boosted finished steel demand. Steelmakers were upbeat on hopes of demand sustaining for two weeks at the minimum, which gave ferrous scrap imports a push. Long steel prices were unchanged while flat steel jumped by Rs3,000-3,500/mt for June shipments.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, inched up by $1/mt to $473/mt cfr Nhava Sheva. From the prior Friday, the index remained unchanged. Deals for HMS #1 of Dubai and other UAE-origin material were at prices above $475-480/mt cfr Nhava Sheva on Friday.
Following a recovery in demand, containerized shredded from EU/UK traded at $510/mt cfr Nhava Sheva. The daily Davis Index for containerized shredded settled unchanged at $510/mt cfr Nhava Sheva on Friday. From the prior Friday, the index rose by $2.25/mt.
The indexes for P&S and #1 busheling were also unchanged at $522/mt and $545/mt cfr Nhava Sheva, respectively. However, bids for prime grades lagged by over $10-15/mt against present offers.
The daily index for US-origin HMS 1&2 (80:20), Friday, settled at $483.75/mt cfr Nhava Sheva, down $1.75/mt. A drop in West Coast containerized prices pressured few sellers to liquidate stocks at lower prices. From a week ago, the index rose $9.75/mt as June monthly domestic trades kicked off with a $50-60/gt rise against May month in the US.
On Friday, melting scrap offers in Alang rose by Rs300/mt to Rs36,800/mt ex-yards. Easing oxygen supply for industrial use is likely to boost cutting operations at shipbreaking yards. In Mumbai, rebar prices were unchanged at Rs48,400/mt ex-works on Friday, while ingot offers rose by Rs200-300/mt in the Mandi Gobindgarh to Rs46,500-46,700/mt ex-works on Friday.
In China, spot iron ore prices for 62pc Ferrous content remained around $210/mt cfr North China. In the spot market, rebar in Shanghai rose by CNY500/mt from a week prior to CNY5,250/mt ex-works. Domestic billet prices rose CNY30/mt to CNY5,000/mt ex Tangshan, indicating a strengthened sentiment in the Asian billet export markets.
The daily Davis Index for containerized shredded, Friday, settled at $515/mt cfr Indian subcontinent, down by $0.04/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $489.45/mt cfr Indian subcontinent, down $2.05/mt from Thursday.