On Monday, Indian mills were largely away from imported ferrous scrap trades due to a disparity between bids and offers. Most suppliers either kept their offers unchanged or looked to raise asking prices this week. The rise could be aided by Pakistani mills paying better prices than Indian buyers. In the past 10 days, prices had declined by around $60-80/mt depending on the origin and grade. But amid a possibility of a drop in Turkish bulk scrap in the coming days, mills chose to stay away from purchases for the time being.
For those who have decided to import, appreciating Indian currency against the US Dollar supported sentiment. The Indian currency reached Rs72.90 against $1 on Monday from Rs73.5 a week ago.
The Davis Index for containerized shredded, Monday, settled at $430.71/mt cfr Nhava Sheva, up by $1.96/mt from Friday. Most buyers stayed away from shredded bookings citing non-workable offers. Only some alloy makers looked to purchase the grade. Secondary steelmakers are unwilling to bid over $400/mt cfr Nhava Sheva levels.
Last week, prices of imported HMS in India dropped by over $60-80/mt amid strong resistance and eased supply. A few traders attempted to raise their asking rates by $10/mt on Monday from the Friday levels. But clarity on price direction could emerge only as the week passes. In Turkey, offers for HMS 1&2 (80:20) were at $435-440/mt cfr Turkey against negotiations of $425-430/mt cfr Turkey.
The Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $350/cfr Nhava Sheva down by $5/mt from Friday. A few distressed sellers offered material at $340-350/mt cfr Nhava Sheva. On Monday, a few traders sold #1 HMS at $350-360/mt cfr Nhava Sheva depending on quality. Australian yards continued to offer the grade at $400/mt cfr Chennai in containers.
In China, the government has announced stricter pollution control measures effective till January 28. Spot iron ore prices were at $168.5/mt cfr China for Fe content 62pc amid easing supply. On Monday, Q235 150mm square billets prices in China remained flat at CNY3,830/mt ex-works Tangshan including 13pc VAT. Indian mills looked to sell billets overseas amid a decline in the domestic prices and targeted $550-560/mt fob India.
The daily Davis Index for containerized shredded, Monday, settled at $426.12/mt cfr India subcontinent, up by $3.30/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $382.76/mt cfr India subcontinent, down by $8.19/mt. Despite firm prices in the US domestic market, bids for HMS scrap in the subcontinent were under pressure amid bearish domestic fundamentals.