Indian buyers were reluctant to book imported ferrous scrap amid weak domestic fundamentals. Finished steel demand remains below expectation for mills, who decided to hold purchases. Offers for ferrous scrap remained largely firm on global cues despite limited interest from buyers.
Offers for containerized shredded remained firm in the range of $520-525/mt cfr Nhava Sheva. The Davis Index for containerized shredded, Wednesday, settled at $517.5/mt cfr Nhava Sheva, down $2.5/mt from Tuesday. Bids lagged consistently on weak steel demand with offers still firm.
The weekly Davis Index for cast iron, rotors, and drums, Wednesday, settled at $514/mt cfr Nhava Sheva, up by $7/mt. Tight supply and high demand in the supplier countries pushed offers up. Buyers remained silent, resisting high offers.
Mills, however, resisted booking shredded scrap as they want to ensure that these levels sustain. Cyclone Tauktae kept activities impacted on coastal lines. Lockdowns have been extended in most states, which has severely hampered economic activities. Mills are left with no option other than to divert attention to export markets. However, uncertainty in China pressured export sentiment this week.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Wednesday, remained unchanged at $498/mt cfr Nhava Sheva. Offers that hit a decade’s high last week remained firm on expectations of improving steel demand. Offers for HMS #1 from Dubai-origin were above $505-510/mt cfr Nhava Sheva and $510-515/mt cfr Chennai.
Steel demand remains weak in India, but a few secondary steel mills could restock as oxygen supply has eased.
The index for US-origin HMS 1&2 (80:20), Wednesday, settled at $500/mt cfr Nhava Sheva, unchanged from Tuesday in a silent market. Amid the non-availability of containers and severe logistical challenges, mills stayed away from HMS offers from the UK and US yards.
The Indian Rupee was near Rs73 against the $1 against Rs74 levels last week but failed to encourage importers amid weak demand.
In China, domestic billet prices continued to drop reaching CNY5,300/mt ex Tangshan on Wednesday, down CNY140/mt. Rebar and HRC prices declined by CNY150/mt and CNY170/mt, respectively, on Wednesday from a day ago. Falling steel prices in China pressured sentiment in Asia and buyers took a short pause.
Subcontinent
The daily Davis Index for containerized shredded, Wednesday, settled at $521.88/mt cfr Indian subcontinent, down by $2.44/mt; while that for containerized US-origin HMS 1&2 (80:20) was at $504.56/mt cfr Indian subcontinent, down by $0.31/mt from Tuesday.
($1=Rs73.14)