Imported scrap prices in India were mixed this week. Prices for a few grades fell this week with buyers refusing to accept higher offers citing low domestic scrap and sponge iron prices. Traders are not optimistic about a healthy ferrous scrap even in the coming days due to the ongoing monsoon season and fears of stricter social distancing measures as COVID-19 cases are yet to come under control. Despite increased production downstream consumption of steel remains hit with infrastructure projects in many parts of the country stalled.
The workforce has started returning to work and trades and other labour-oriented economic activities are expected to gain momentum. The Sino-Indian border tensions have also started to reflect in their trade relations.
In northern India, many small-scale steelmakers are still operating for 12-hours versus the usual 24, impacting productions and cash flows.
The daily Davis Index for containerised shredded settled at $271/mt cfr Nhava Sheva on Friday, down by $6/mt from a day ago but up $1/mt from the prior week. Offers for shredded from the UK and Europe were at $275-280/mt cfr Nhava Sheva. But trades were reported at $265-270/mt cfr Nhava Sheva.
Imported HMS scrap prices mixed
The Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $255/mt cfr Nhava Sheva, down by $3/mt from a day ago but up by $3/mt from the prior week. The index for US-origin HMS 1&2 (80:20) settled at $255/mt cfr Nhava Sheva, down by $2/mt from Thursday and down by $10/mt from the prior week.
The index for South African HMS 1&2 (80:20) settled at $255/mt cfr Nhava Sheva, unchanged from the prior week. South African suppliers continued to face permit issues and there were no fresh offers in the market.
Trades for South American containerised HMS 1&2 (80:20) were reported at $250/mt cfr Nhava Sheva. The weekly index for Latin American HMS 1&2 (80:20) settled at $253/mt cfr Nhava Sheva, up by $3/mt from the prior week.
The index for the UK and Europe-origin HMS 1&2 (80:20) was at $250/mt cfr Nhava Sheva, up by $2/mt from the prior week. Trades for #1 HMS in containers concluded at $250-255/mt cfr Chennai. Australia-origin HMS 1&2 (80:20) traded at $255/mt cfr Nhava Sheva and Mundra, flat from the prior week.
In Goa and Chennai, West African HMS 1&2 (80:20) traded at $245-250/mt cfr, down by $5/mt. Bids on Friday dropped to $235-240/mt cfr due to a fall in domestic semi-finished steel and scrap prices.
The weekly indexes for busheling in containers settled unchanged at $290/mt cfr Nhava Sheva. P&S 5ft scrap was offered at $276/mt cfr Nhava Sheva, up by $3/mt. Offers for Turning scrap were at $230-235/mt cfr Nhava Sheva with bids at $220-225/mt cfr Nhava Sheva on Friday.
Market highlights
South Asia
The Davis Index for containerised shredded settled at $275.90/mt cfr India subcontinent on Friday, down by $1.25/mt from $277.15/mt on Thursday.
The daily Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $258.15/mt cfr India subcontinent on Friday, up from $257.65/mt cfr India subcontinent.