Demand for imported ferrous in India continued to grow. Deals, however, were limited amid cautious buying. Mills in Pakistan and Bangladesh could stay away from overseas ferrous scrap purchases due to the Eid holidays next week, keeping just Indian steelmakers in the market for overseas scrap in South Asia.
Offers for containerized shredded were above $480-485/mt cfr Nhava Sheva on Thursday. The Davis Index for containerized shredded, Thursday, settled at $483.75/mt cfr Nhava Sheva, up by $5.5/mt from Wednesday. Mills, however, refrained from shredded scrap bookings as prices have reached a two-month high. Shredded prices could breach the $490-495/mt cfr Nhava Sheva mark as seen in early January if they maintain the pace of gain for 15 days.
The index for US-origin HMS 1&2 (80:20), Thursday, settled at $455/mt cfr Nhava Sheva, up by $8.75/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 $453/mt cfr Nhava Sheva, up by $6/mt. Deals for Dubai-origin HMS #1 were in the range of $455/mt cfr Nhava Sheva and offers of $470-475/mt cfr Chennai. Demand in Chennai is expected to slow as new restrictions have been announced in Tamil Nadu to curb rising COVID-19 cases.
The UAE government has extended its ban on ferrous scrap exports by three more months. But market participants believe, it is unlikely to affect the Indian markets.
On Thursday, melting scrap offers in Alang remained unchanged between Rs38,200-38,000/mt ex-yards. Activities at the yards remained largely suspended. In Mumbai, rebar prices reached Rs50,600/mt ex-works Mumbai, up Rs400/mt from a day prior.
Indian HRC prices have increased by Rs4,000-4,500/mt for May shipments, reaching an 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, iron ore spot prices for 62pc ferrous content are expected to jump to record-high and are nearing $200/mt cfr China levels, state market participants. After the labour day holidays, markets reopened in China with billet prices surging by CNY130/mt to CNY5,120/mt ex-works Tangshan.
Indian mills kept billet export offers above $690-700/mt cfr China amid optimism over a rise in billet export deals due to the cancellation of import duties effective May 1. Also, Chinese domestic HRC prices rose by CNY200-300/mt on May 6, pushing export offers up by $50/mt.
Subcontinent
The daily Davis Index for containerized shredded Thursday 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 $462/mt cfr Indian subcontinent, up by $7.69/mt from Wednesday.
($1=Rs73.8)