Imported ferrous scrap prices in India rose on Thursday as market sentiment improved with lockdown relaxations in many parts, including the financial capital of the country, Mumbai. US-based suppliers, have kept their offers firm despite lack of demand from subcontinental buyers. Range-bound prices in Turkey and elevated container freight charges in Asia kept sellers in the US bullish.
The daily Davis Index for containerized shredded rose by $3.75/mt to $510/mt cfr Nhava Sheva, with a few small-tonnage deals at the present price levels.
The daily Davis Index for US-origin HMS 1&2 (80:20) settled unchanged at $485/mt cfr Nhava Sheva. Large-scale mills are likely to be in the market for imported ferrous scrap in the coming days as steel prices have started picking up in India.
Meanwhile, iron ore miners in the country have paid higher premiums for excavation of resources, which could increase the input costs for sponge iron makers. Already prices for sponge iron in most Indian markets have increased by Rs1,000/mt at the minimum from a day ago. There is also a continued shortage of domestic ferrous scrap as activities in the industrial sector were subdued for over a month.
The daily index for UAE-origin HMS 1&2 (80:20) rose by $8/mt to $472/mt cfr Nhava Sheva. Sellers were bullish on strong global cues and raised offers. Should the steel demand rise after the lockdowns, mills are likely to accept the present offer levels. Auto demand is yet to recover, but flat steel makers have lifted prices by Rs2,500-3,000/mt for June shipments, eyeing the strong international markets.
In the domestic market, ingot and billet prices have gained around $30/mt since the start of the week. Meanwhile, prices for HMS attachments and Melting scrap from shipbreaking rose by Rs500/mt from a day ago to Rs37,500/mt and Rs36,500/mt ex-Alang, respectively.
Subcontinent
The Davis Index for containerized shredded, Wednesday, settled at $515.04/mt cfr Indian subcontinent, up $3.73/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $491.50/mt cfr Indian subcontinent, up $1.48/mt.
($1=Rs72.92)