Indian imported ferrous scrap prices were pressured by a decline in rebar sales. Consequently, rebar prices of induction furnace mills dropped by over Rs1,200/mt in Mumbai and other major markets. Also, the improved availability of domestic ferrous scrap has affected importers’ buying appetite.
Steelmakers’ sentiments were positive in India amid recovering Chinese steel prices and the expectation of a peak demand season over the next two months in China.
Sellers were unwilling to close deals and held materials as they await clarity on potential freight rate hikes. The daily Davis Index for containerized shredded, Friday, settled unchanged at $521.25/mt cfr Nhava Sheva. The index was down by $3.75/mt from last Friday. Trades for imported shredded in India remained limited as buyers, including regular alloy maker mills, stepped back from trades this week.
The daily Davis Index for UAE-origin containerized HMS 1&2 (80:20) inched up on Friday to $470/mt cfr Nhava Sheva, by $2/mt. The index was down by $5/mt from prior Friday. With the COVID-19 situation appearing to be a bit under control, hopes of active trades emerged in the market supported by the receding monsoon.
For UAE-origin #1 HMS offers were around $480-485/mt cfr Nhava Sheva while trades heard at $475-480/mt cfr Nhava Sheva, down $10/mt from Aug 27.
The daily Davis Index for US-origin containerized HMS 1&2 (80:20) was unchanged at $476.25/mt cfr Nhava Sheva on Friday. The index dropped $3.75/mt following softening prices on the US east coast on fob basis. The domestic monthly settlements for September in the US markets kicked off with $50/gt down for prime grades, while $25/gt for obsolete grades against the August settlement.
The Davis index for containerized P&S was at $525/mt cfr Nhava Sheva, down $5/mt from last Friday, while the index for #1 busheling dropped by $3/mt to $540/mt from Aug 27. Inquiries for prime grades remained scarce as most mills found it unattractive.
Demand in the Alang shipbreaking market, Friday, was low pulling the asking prices down by Rs600/mt to Rs35,700/mt ex-yards for melting scrap. In Mumbai, the asking prices for rebar dropped by another Rs300/mt to hover at Rs48,000/mt ex-works on slow sales. Rebar prices are lower by Rs1,200/mt successively in the last two weeks.
In Mandi Gobindgarh, ingots traded at Rs44,600/mt ex-works Friday, down by Rs300/mt from a day prior. Weak domestic cues kept importers interested in booking only for immediate melt requirements.
On Thursday, the daily spot prices of Fe 62pc iron ore dropped to $140/dmt cfr North China, down over $3.5/mt in a day. Domestic finished steel spot prices in China recovered by CNY30/mt ($5/mt) on Thursday amid a slight improvement in demand.
The daily domestic billet prices in China, Friday, were rose CNY40/mt to CNY5,060/mt ($785/mt) ex-Tangshan inclusive of VAT. Billet prices in China recovered by CNY110/mt from last Friday.
Offers for imported billet, Friday, recovered to above $685-690/mt cfr China from Southeast Asian supplier. From India, billet export offers targeted above $610/mt fob basis amid lower realisation in the domestic markets.
Subcontinent
The daily Davis Index for containerized shredded on Friday, settled at $524.5/mt cfr Indian subcontinent, up by $0.75/mt; while that for containerized US-origin HMS 1&2 (80:20) settled unchanged at $483.50/mt cfr Indian subcontinent from a day prior.
($1=Rs73.02; CNY6.46)