Imported scrap prices in India remained firm on Monday with production rates almost reaching pre-COVID-19 levels. Amid anticipation of slow but steady demand recovery, India could become a preferred market for most sellers in the coming weeks.
Steel production by most leading steelmakers like Tata Steel, JSW Steel, and AM/NS steel has reached 100pc capacity. Downstream demand from OEM’s and alloy makers is also expected to pick up since the auto industry is likely to recover faster than expected earlier. With finished steel inventories dipping, most mills have ramped up production.
The call for self-reliance reiterated by Narendra Modi on Independence day, August 15 also infused some positive sentiment in the market. Most market participants are hoping for a boost from the infrastructure segment.
The daily Davis Index for containerized shredded settled at $314.11/mt cfr Nhava Sheva, down by $0.06/mt from Friday. A few offers for UK-origin containerized shredded were at $315-320/mt cfr Nhava Sheva on Monday. Suppliers kept offers firm expecting strong domestic fundamentals in the next few days. Trades for shredded were reported in the range $312-314/mt cfr Nhava Sheva.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $302/mt cfr Nhava Sheva, up by $1.25/mt from Friday. Trades for UAE-origin HMS scrap increased. But many buyers are exercising caution while dealing with UAE-based scrap sellers as the country has officially banned exports of ferrous scrap.
Deals for Dubai-origin material were heard at $295-305/mt cfr Nhava Sheva for its shorter delivery time compared to that of the UK or the US. Indian mills are likely to keep buying from Dubai if steel demand remains strong in the domestic market.
Offers for US-origin HMS 1&2 (80:20) were at $300-305/mt cfr Nhava Sheva on Monday. The index for US-origin HMS 1&2 (80:20) settled at $298.25/mt cfr Nhava Sheva, up by $0.39/mt from Friday.
Subcontinent
The Davis Index for containerized shredded settled at $307.18/mt cfr India subcontinent on Monday. The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $292.00/mt cfr India subcontinent. These indexes dropped marginally amid lowered containerized freight rates from the prior week as per Davis Analysis.
($1=Rs74.84)