Ferrous scrap importers in India resumed inquiries. But buyers could wait for a $10-15/mt drop in the prices before booking material. The cancellation of rebates on 23 more steel product exports from China boosted sentiment and primary steel producers eyed a hike for August shipments.
Indian exporters stand to gain from rebate cancellations. Mills could aim to increase their share in the export market as the domestic demand is still under pressure. On the contrary, major suppliers like China and Russia have left a void in the export markets.
The daily Davis Index for containerized shredded on Friday settled at $533.75/mt cfr Nhava Sheva, down $3.75/mt. Offers for shredded from the UK/EU and the US were unchanged at $535-545/mt cfr Nhava Sheva. But buyers were silent awaiting a drop in prices. The disparity between offers and bids although has narrowed but remains over $10/mt.
Following a $15/mt drop in Turkish bulk prices, market participants expect a bearish global scrap market. But Asian containers markets are yet to reflect the decline. In Turkey, the daily HMS 1&2 (80:20) index was at $470.88/mt cfr Turkey, down $3.88/mt on Thursday.
The daily Davis Index for UAE-origin HMS 1&2 (80:20) declined by $4/mt to $470/mt cfr Nhava Sheva. Offers from UAE sellers remained firm, but buyers targeted prices lower by $10-15/mt to resume trades. There was a sustained recovery in demand for UAE-origin material in Pakistan after Eid. A few deals for #1 HMS were reported at $480/mt cfr Nhava Sheva.
The weekly index for P&S fell by $8/mt to $535/mt cfr Nhava Sheva, while the index for #1 busheling was at $562/mt cfr, down by $3/mt from July 23, on slow inquiries for prime grades.
In a silent market, the Davis Index for US-origin HMS 1&2 (80:20) dropped by $3.75/mt to $480/mt cfr Nhava Sheva from a day ago. The index was down by $2.5/mt from July 23 following softening outlook for the August domestic monthly settlements in the US.
In Alang’s shipbreaking market, there were no trades amid the transporters’ strikes for almost a week. In Mumbai, the asking rates for rebar were flat on Friday. The index for rebar settled at Rs49,000/mt ex-works, up by Rs1,000/mt from a week ago. In Mandi Gobindgarh, ingot traded above Rs45,600/mt ex-works.
On Friday, international iron ore Fe 62pc in the spot market reached $182/mt cfr North China, dropping around $20/mt in a week. Iron ore prices have dropped by almost $40/mt in two weeks amid the Chinese government’s stringent stance towards production cuts and price control.
Domestic billet prices rose by CNY40/mt from Thursday to CNY5,280/mt ex-Tangshan inclusive of VAT on Friday. Billet prices rose by CNY80/mt from last Friday.
HRC and rebar futures in China maintained an uptrend trend amid falling inventories. HRC futures were above CNY6,150/mt and rebar CNY5,735/mt on Friday. Offers for billets from India were still above $625-630/mt fob or $715-720/mt cfr China.
The daily Davis Index for containerized shredded settled Friday at $539.29/mt cfr Indian subcontinent, down $3.27/mt, while the daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $492.94/mt cfr Indian subcontinent, down by $4.41/mt.