Deals for imported ferrous scrap in India were very few on Thursday. For grades like busheling, there was a wide disparity between offers and buying interest. Sellers were unwilling to lower their asking prices citing elevated freight rates and recovering rebar demand.
Prices dropped as buyers were sceptical about booking material at present price levels. But since demand is stable, prices could find ground now, believe major traders.
The impact of the ongoing strike in Mandi Gobindgarh was limited. Trades for ferrous scrap and finished steel were halted for two days. Various associations had raised concerns against GST compliance challenges and sought government intervention.
In a silent market, the daily Davis Index for containerized shredded dropped to $427.5/mt cfr Nhava Sheva, down $1.25/mt. Most yards and traders kept asking rates $5-10/mt higher than the index price, citing elevated freight rates and tight supply. Buyers on the other hand strongly resisted offers.
In Turkey, mills bought some small bulks from Russia and Baltic-origins at lower prices. Bids for HMS 1&2 (80:20) in bulk were at $420-425/mt cfr Turkey.
Buyers for cast iron, rotors, and drums were interested in $400-410/mt cfr Nhava Sheva levels against offers of $445-455/mt cfr.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Thursday, settled unchanged at $395/mt cfr Nhava Sheva. Buying interest remained around $390/mt for the grade in anticipation of a further drop.
Sellers offered Dubai-origin HMS #1 and P&S at $410/mt cfr Nhava Sheva against, with bids below $400/mt cfr Nhava Sheva.
Most furnaces in India found HMS from UAE and West Africa in their affordable price range.
After a long gap, bookings for South African HMS 1&2 (80:20) resumed in India. The South African government has offered export permits to a few high-profile sellers and traders. HMS 1&2 (90:10) in containers sold at $415/mt cfr Chennai on Wednesday.
Sellers offered Dubai-origin HMS #1 and P&S at $410/mt cfr Nhava Sheva while bids were at $400/mt cfr.
The daily index for US-origin HMS 1&2 (80:20), Wednesday, settled unchanged at $410/mt cfr Nhava Sheva. Offers for oversized West African HMS for 20-21mt loaded with high carbon content heard above $375-380/mt cfr Nhava Sheva.
Shipbreaking melting scrap prices in Alang, Thursday, remained at Rs30,000/mt ex-Alang. Rebar prices in Mumbai remained stable on Thursday. Amid looming uncertainty due to yet another wave of COVID-19 and renewed restrictions in many states, trades slowed in several regions. Rebar demand, however, recovered and supported seller sentiment.
In China, finished steel and raw material futures continued to rise amid a recovery in demand. Spot imported iron ore 62pc ferrous content is expected to rise on Thursday from around $163/mt cfr North China on Wednesday. Domestic billet prices in the retail market increased to CNY4,470/mt ex-Tangshan, up CNY20/mt, including VAT.
A major reason for looming uncertainty is the lack of clarity on the export rebate taxes in China. According to CISA’s meeting conducted on Thursday, it is expected that the export tax rebate on HRC could change from 13pc present to 9pc. An official announcement is expected on Friday.
On Thursday, the daily Davis Index for containerized shredded dropped to $429.04/mt cfr Indian subcontinent, down by $0.06/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $415.14/mt cfr Indian subcontinent, up $0.06/mt from a day ago.