Only some sellers offered imported ferrous scrap in India at firm prices. Buyers too were few amid domestic uncertainty. The outlook for steel demand due to the resurgence of the COVID-19 cases and approaching holidays of Holi and Easter remains weak in the coming days.
The weekly Davis Index for cast iron, rotors, and drums, Wednesday, settled at $446/mt cfr Nhava Sheva, up by $2/mt. Trades were reported in the range of $445-450/mt cfr Mundra. Buyers were interested in $410-420/mt cfr Nhava Sheva levels against offers of $450-455/mt cfr. Still, elevated container freight rate kept sellers bullish.
Amid firm offers, the daily Davis Index for UAE-origin HMS 1&2 (80:20), Wednesday, settled at $393/mt cfr Nhava Sheva, up by $3/mt. Buying interest was at $380-390/mt cfr Nhava Sheva. A limited volume of Dubai-origin HMS #1 and P&S sold at around $395-400/mt cfr Nhava Sheva.
But steelmakers are not sure if steel prices could support imported scrap purchases in the near term.
The daily Davis Index for containerized shredded inched up by $2.5/mt at $423.75/mt cfr Nhava Sheva. Most secondary mills are targeting $405-410/mt cfr Nhava Sheva but suppliers resisted these bids. Mills thus opted for domestic alternatives as the gap between bids and offers remains widened.
The daily index for US-origin HMS 1&2 (80:20) settled at $404.29/mt cfr Nhava Sheva, up by $1.79/mt. With most US suppliers returning to overseas markets, prices could come under pressure. Offers for HMS 1&2 (80:20) from the UK and Australia remained above $400-405/mt cfr Nhava Sheva as most traders are unable to source lower-priced materials from the supplier yards.
On Wednesday, Shipbreaking melting scrap offers in Alang, dropped by Rs800/mt on subdued demand. Melting prices were at Rs30,300-31,300/mt ex-Alang. Buyers were largely away from the market amid the upcoming holidays next week. A few participants resumed trades in Mandi Gobindgarh despite the strike against GST compliance. Ingot prices dropped by Rs600/mt to Rs40,100/mt ex-works Mandi Gobindgarh.
In China, steel futures continued their uptrend and moving up by 1-2pc from a day prior. Spot imported iron ore 62pc ferrous content is increased by $2/mt on Wednesday surpassing the $160/mt cfr North China mark on Wednesday. With rising demand, inventories continued to dip and boosted prices.
Domestic billet prices in the retail market increased by CNY40/mt to CNY4,600/mt ex-Tangshan on Wednesday, including VAT. Rebar and HRC prices continued to stay high with recovering steel futures.
There are increasing worries about the shipping of material amid news of a large vessel stuck in the Suez Canal. This is likely to impact transport on one of the busiest transport routes. Delays in vessel arrivals and unavailability of vessel space have already impacted logistics.
On Wednesday, firm offers pushed the daily Davis Index for containerized shredded to $417.34/mt cfr Indian subcontinent, up by $2.72/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $399.55/mt cfr Indian subcontinent, up by $1.11/mt from a day ago.