Despite soft cues in the Turkish bulk market, which is the usual trendsetter for the ferrous scrap market, Asian containerised prices are showing signs of an uptick, especially in the Indian subcontinent. Recovering domestic demand kept sentiments positive in India with the likelihood of another round of price hikes for September finished steel deliveries.
The daily Davis Index for containerized shredded, Tuesday, firmed up by $2.5/mt to $532.5/mt cfr Nhava Sheva. The deals reported last week were around $5-7/mt lower than current offers. Most traders anticipate revival in demand on limited ferrous scrap inventories with steel producers.
The daily/ Davis Index for UAE-origin HMS 1&2 (80:20) inched up $3/mt to $478/mt cfr Nhava Sheva. Indian mills raised their bids to secure materials while Pakistani buyers countered with attractive levels. UAE-origin #1 HMS, Tuesday, continued to trade above $485/mt cfr Nhava Sheva on tight availability.
Weak billet export demand from the ASEAN countries amid ongoing restrictions in the Philippines, Indonesia, Thailand and other markets weighed down Asian billet prices. ASEAN billet import prices dropped to $690-695/mt cfr China. This pressured Indian billet exporters who were targeting above $620/mt fob.
The successive rise in rebar prices and demand, along with high transportation costs, pushed domestic ferrous scrap prices up in Mumbai. Prices for domestic HMS 1&2 (80:20) were at Rs36,000/mt ($484/mt) delivered Mumbai on Tuesday. Mills resumed imported HMS 1&2 (80:20) trades with domestic prices nearing parity to imports.
Trading in Alang’s shipbreaking market resumed with the end of almost a 20-day transporters’ strike on Tuesday. Melting scrap traded at Rs37,000/mt ex-Alang. In Mumbai, the asking prices for rebar rose above Rs50,500/mt ex-works, up by Rs500/mt. In Mandi Gobindgarh, ingots traded at Rs46,000/mt ex-works amid a gradual recovery in rebar demand.
In China, port operations are delayed due to enhanced quarantine controls at various sites and transportation facilities. For export, demand for HRC was stable with prices at $940-950/mt fob China.
The daily domestic billet price in China, Tuesday, dropped to CNY5,040/mt ($780/mt) ex-Tangshan inclusive of VAT, down by CNY40/mt. International daily iron ore Fe 62pc price index recorded a marginal uptick of $1.65/dmt to $162.55/dmt cfr North China on Monday.
The daily Davis Index for containerized shredded on Tuesday, settled at $536.75/mt cfr Indian subcontinent, up by $3.38/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $490.47/mt cfr Indian subcontinent, up by $3.22/mt.