Trades for imported scrap trades picked up due to a steep decline in prices. Inquiries also gained momentum as the Indian currency appreciated toRs72.95 against $1 from Rs73.5 last week.
Still, a majority of buyers opted for domestic scrap and Sponge iron purchases which showed a decline of Rs2,750/mt ($38/mt) and Rs1,925/mt delivered Mumbai, respectively, in a week to become a more competitive option despite imported scrap declining by over $50-60/mt.
The Davis Index for containerized shredded, Friday, settled at $428.75/mt cfr Nhava Sheva, down by $3.33/mt from Thursday and $50.54/mt from a week ago. Most buyers stayed away from shredded bookings citing non-workable offers even after the decline.
Prices of imported HMS in India dropped by over $60-80/mt in less than a week amid strong resistance to present offer levels and eased supply. The downtrend could continue till the Chinese New Year holidays end in February.
The Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled at $355/cfr Nhava Sheva down by $17/mt from Thursday. A few offers dropped to $340-350/mt cfr Nhava Sheva following the domestic bear run. A few traders offered #1 HMS at $355-360/mt cfr Nhava Sheva.
Chinese steel prices remained flat and Shagang steel rolled over its rebar prices for January-end deliveries. Spot iron ore prices were at $170/mt cfr China for Fe content 62pc. On Friday, Q235 150mm square billets prices in China rose CNY20/mt to CNY3,830/mt ex-works Tangshan including 13pc VAT. Indian mills are likely to resume exports of billets soon amid a sharp decline in the domestic market and target price levels of $550-560/mt fob India.
Trades for grades like busheling and P&S are still low. Offers for turning scrap were at $330-340/mt cfr Mundra while HMS 1&2 (80:20) from Australia and the UK/EU was offered in the range of $375-400/mt cfr Nhava Sheva, depending on quality. In the overseas market, HMS from Dubai was a preferred option for most buyers on shorter delivery time and competitive prices amid a volatile market.
The daily Davis Index for containerized shredded, Friday, settled at $422.82/mt cfr India subcontinent, down by $3.42/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $390.95/mt cfr India subcontinent, down by $1.65/mt. The shortage of containers is expected ease with the Chinese New Year Holidays slowing import-exports in China for almost 15 days in mid-February.