Indian mills resumed ferrous scrap imports after over two months of silence. Piled up consignments at ports have started clearing up. Only a few bookings for July shipments were reported. Large scale procurement, however, seems to be a remote possibility. Some mills have resumed operations at 30pc capacity. Major mills continued to export billets and HRC in bulk volumes to China and Southeast Asia on subdued domestic steel demand.
Most mills faced documentation issues due to reduced banking hours. Shortage of manpower also added to their woes. Though, with automakers gradually resuming production, steelmakers are hopeful of demand returning in the coming days.
The daily Davis Index for containerised shredded settled unchanged at $273/mt cfr Nhava Sheva on Friday, up by $10/mt. Over the week prices increased by over $10-15/mt from the prior week. Bids from mills increased this week as suppliers refused to offer at lower levels. Shredded in containers was offered at $265-270/mt cfr Nhava Sheva. Though there are no buyers for shredded at present, activity is likely to improve next week.
Few UK and European suppliers are offering shredded in containers at $280-285/mt cfr Nhava Sheva. But buyers were not keen to book at those prices.
The daily Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $255/mt cfr Nhava Sheva, up by $5/mt. Supply of scrap from UAE could continue until there is clarity about the implementation of scrap export ban from the Middle Eastern country.
The daily index for US-origin HMS 1&2 (80:20) was at $253/mt cfr Nhava Sheva, up by $5/mt. Bids by many mills are expected to pick up above the present levels of $240-245/mt cfr Nhava Sheva as suppliers were unwilling to match these prices.
South African HMS 1&2 (80:20) traded at $245-250/mt cfr Nhava Sheva on Friday, up by $5-10/mt from the prior week. The same was offered at $240-245/mt cfr in the early week. Brazilian HMS 1&2 (80:20) traded at $235-240/mt cfr Nhava Sheva. Offers for the UK and Europe-origin HMS 1&2 (80:20) were at $235-240/mt cfr Nhava Sheva.
Australia-origin HMS 1&2 (80:20) was offered at $250-255/mt cfr Nhava Sheva and Mundra, up by $10/mt from the prior week. A rise in the demand from east Asian buyers gave Australian offers a lift this week.
In Goa, mills resumed enquires for West African HMS 1&2 (80:20) unchanged at $235-240/mt cfr Goa.
The index for busheling in containers settled at $280/mt cfr Nhava Sheva and the index for PS settled at $270/mt cfr Nhava Sheva, up by $2/mt and $4/mt, respectively, from the prior week.
Imported ferrous scrap prices in Taiwan rose marginally amid thin trades.
The daily Davis Index for containerised US-origin HMS 1&2 (80:20) rose by $1/mt to $224/mt cfr Taiwan on Friday but fell by $6/mt from the week prior.
Offers for US-origin HMS 1&2 (80:20) were reported at $230-235/mt cfr Taiwan with deals heard at $225/mt cfr. Traders are expecting ferrous scrap rates to go up with Turkey mills raising buying prices. The index for HMS 1&2 (80:20) settled at $250.15/mt cfr Turkey on Thursday, a rise of $4.65/mt from the day prior.
Amid continued rain in Taiwan, demand for finished steel slowed. Manufacturers are bidding for ferrous scrap from origin countries barring the US, where prices are bullish.