Imported ferrous scrap prices in India are expected to rise due to increased inquiries and trades for imported HMS. Mills are likely to purchase more imported in the coming days as domestic scrap generation has taken a hit. Suppliers were unwilling to match present bid levels forcing mills to raise their expectations.
The daily Davis Index for containerized shredded, Friday, settled unchanged at $284.65/mt cfr India subcontinent.
The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $264.85/mt cfr India subcontinent, up by $2.2/mt from $262.65/mt cfr.
The daily Davis Index for containerised shredded settled at $280/mt cfr Nhava Sheva on Friday, unchanged from a day ago, and by $4/mt from the prior week. A few trades in containers for UK-origin containerised shredded closed at $280/mt cfr Nhava Sheva. Most offers from the US and UK increased to $285-290/mt cfr Nhava Sheva on Friday rejecting bids of $275/mt cfr Nhava Sheva early in the week.
A slight appreciation of the Indian Rupee against the US dollar pulling to below Rs75 level is likely to support importers in the coming days. High imported scrap prices and low domestic scrap availability to keep trades however limited.
The Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $260/mt cfr Nhava Sheva, up by $1/mt from the prior week. A rise in prices for UAE-origin #1 HMS into Pakistan encouraged suppliers to offer more material to Pakistani buyers.
The index for US-origin HMS 1&2 (80:20) settled at $263/mt cfr Nhava Sheva, up by $1/mt from Thursday and $5/mt from the prior week. The index for South African HMS 1&2 (80:20) settled at $263/mt cfr Nhava Sheva, a rise of $8/mt from the prior week. Brazilian and West African HMS 1&2 (80:20) in containers traded at $248-255/mt cfr Nhava Sheva.
The index for UK/ Europe-origin HMS 1&2 (80:20) rose by $7/mt to $255/mt cfr Nhava Sheva from the prior week. Contenarised trades for the grade concluded at $255/mt cfr Nhava Sheva. Australian-origin HMS 1&2 (80:20) traded at $260/mt cfr Nhava Sheva and Mundra up by $2/mt from the prior week.
In Goa and Chennai, West African and Australian-origin HMS 1&2 (80:20) traded unchanged at $255-260/mt cfr.
The weekly index for busheling in containers settled unchanged at $293/mt cfr and the index for P&S rose by $3/mt to $283/mt cfr Nhava Sheva, respectively. The index for Turning scrap rose by $3/mt from the prior week to $233/mt cfr Nhava Sheva. A Brazilian trader sold Turning at $230-235/mt cfr Chennai.
Market highlights
Taiwan
Amid bullish offers, prices for imported ferrous scrap rose in Taiwan by $1/mt. Demand in Turkey and Pakistan has largely supported these prices. But trades in other South Asian markets were limited.
The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $240/mt cfr Taiwan, up by $10/mt from the prior week.
Few deals were heard at $240/mt cfr. Demand for finished steel continued to be sluggish, affecting trades for ferrous scrap.
Few buyers were willing to negotiate despite the rising offers in anticipation of strengthened markets in the coming months. In small bulk markets, bids for Japanese HMS 1&2 (50:50) were at $250/mt cfr, up by $10/mt from the week prior. But Japanese exporters are expecting ferrous scrap prices to rise further next week and refrained from accepting the present bid levels.
($1=Rs74.97; TWD29.48)