In India, demand for imported ferrous picked up amid bullish sentiment in the steel export market. The COVID-19 wave has reached its peak, and new cases could subside in the coming days. Pakistan and Bangladesh could stay away from overseas ferrous scrap purchases ahead of the Eid holidays, making India the only contender in South Asia.
The weekly Davis Index for cast iron, rotors, and drums, Wednesday, settled at $482/mt cfr Nhava Sheva, up by $14/mt. A few sellers are offering cast iron rotor drums were at $490-495/mt cfr Nhava Sheva on Wednesday, up by $15-20/mt from the prior week. Bids at $475-480/mt cfr Nhava Sheva.
Offers for containerized shredded from the UK/EU were at $480-485/mt cfr Nhava Sheva on Tuesday. The Davis Index for containerized shredded, Wednesday, settled at $478.25/mt cfr Nhava Sheva, up by $4.5/mt from Tuesday. Mills, however, were largely away from shredded scrap bookings as prices have reached a two-month high.
The index for US-origin HMS 1&2 (80:20), Wednesday, settled at $446.25/mt cfr Nhava Sheva, up by $2.92/mt from a day ago. US sellers were bullish on May’s domestic demand and lifted their offers for seaborne sales.
Indian mills actively purchased containers of UAE-origin HMS scrap including HMS 1, HMS 1&2 (80:20), and mixed P&S and HMS. The daily Davis Index for UAE-origin HMS 1&2 (80:20) was at $447/mt cfr Nhava Sheva, up by $4/mt. Deals for Dubai-origin HMS #1 were in the range of $450-455/mt cfr Nhava Sheva and $465/mt cfr Chennai.
On Tuesday, melting scrap offers in Alang increased by Rs300-400/mt to Rs38,200-38,000/mt ex-yards. Activities at yards remained largely suspended amid stringent lockdown restrictions. In Mumbai, rebar prices remained stable on Wednesday at Rs50,200/mt ex-works Mumbai, trades were limited with slow demand.
Production by secondary steelmakers has decreased by over 50pc due to the COVID-19 situation. But mills expect activities to pick up again if steel demand continues to recover. Many automakers have also halted operations, impacting alloy steel demand.
Indian HRC prices have increased by Rs4,000-4,500/mt for May shipments scaling all time high. Iron ore and sponge iron prices have also shown an upward movement which could support scrap imports in the coming days.
In China, markets are expected to resume on Thursday, with bullish indications about prices. Indian mills kept billet export offers above $690/mt cfr China and are waiting for the market to re-open. They are optimistic about a rise in billet export deals due to the cancellation of import duties effective May 1.
The daily Davis Index for containerized shredded Tuesday settled at $482.08/mt cfr Indian subcontinent, up by $5.03/mt; while that for containerized US-origin HMS 1&2 (80:20) was at $454.31/mt cfr Indian subcontinent, up by $3.24/mt from Tuesday.
Indian Rupee appreciated below reaching Rs73.8 against $1 on Wednesday from over the Rs75 mark last week. The appreciation could support imports.