Indian ferrous scrap importers resorted to booking ferrous scrap containers actively before prices rise further. Demand for imported scrap is healthy due to a shortage of domestic Sponge iron, scrap, and iron ore. Mills mainly bought HMS scrap from Australia and the UAE. Shipments booked earlier are expected to arrive in late November, easing the supply crunch in the market.
In Turkey, the index for US-origin HMS 1&2 (80:20) on Wednesday was at $328/mt cfr Turkey, with negotiations on Thursday at around $330/mt cfr Turkey. Trades for imported scrap are likely to continue since mills have already booked healthy orders for billets and rebar until January. Supplier countries also focussed on catering to the Turkish market.
The Davis Index for containerized shredded on Thursday settled at $354.79/mt cfr Nhava Sheva, up by $1.79/mt from Wednesday. Trades for shredded were in the range of $352-355/mt cfr Nhava Sheva, with offers of $360/mt on a cfr Chennai basis. Alloy maker based in Mumbai bought 2,000mt shredded from the US and Canada at the index price on Wednesday.
Offer levels in the India market at their highest since December 2018, with the UK and European traders keeping their asking prices at $360/mt cfr Nhava Sheva.
Traders from the UAE also raised HMS offers amid the bullishness in India’s import market. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $339/mt cfr Nhava Sheva, up by $3/mt from Wednesday. Offers for containerized #1 HMS without the cast and galvanized iron from Dubai were above $345-350/mt cfr Nhava Sheva on Thursday, with a few deals reported at $345/mt cfr Nhava Sheva.
Mills in South India, especially Chennai, looked to restock imported scrap. Trades for Australian HMS 1&2 (80:20) in containers were at $340-345/mt cfr Chennai. On Thursday, bids for Turnings scrap were reported at $300-305/mt cfr Nhava Sheva. One of the leading primary steel mill, SAIL, has announced a hike in its long product prices by Rs1,500/mt and flat steel product prices by Rs750/mt ex works keeping sentiments lifted.
The Davis Index for US-origin HMS 1&2 (80:20) was at $336.93/mt cfr Nhava Sheva on Thursday, up by $0.93/mt from the prior day. Offers for the grade in containers were in the range of $340-345/mt cfr Nhava Sheva. There were no offers from the US and Australian bulk suppliers.
In the export market, mills were targetting to sell billets at $490-495/mt cfr SE Asia and China. Many Indian mills sought $470-475/mt fob India, prices which buyers were unwilling to accept yet. Indian suppliers thus refrained from offering bulk volume expecting better realization in the domestic market.
The Davis Index for containerized shredded, Thursday, settled at $357.44/mt cfr India subcontinent, up by $2.04/mt from Wednesday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $339.38/mt cfr India subcontinent, up by $1.44/mt from Wednesday.