Indian mills resumed trades for imported scrap late last week as prices dropped further globally. On Monday, the domestic market remained upbeat amid the union budget announcement allocating funds for infrastructural and slashing import duties on the steel products by 2.5pc to 7.5pc and a one-year waiver on duty applicable on imported scrap.
The recycling fraternity in India has welcomed this move of slashing import duty and announcement of vehicle scrappage policy. Imports of ferrous scrap are expected to rise in the coming years with duty exemption. Also, with the new capacity additions announced for Alang yard and with over 90 yards with HKC compliance, India’s shipbreaking tonnages are expected to cross 4.5mn ldt by 2024 giving a boost to the scrap consumption in the country.
The Davis Index for containerized shredded, Monday, settled at $411.5/mt cfr Nhava Sheva, down by $11/mt from Friday. A few containerized shredded from the UK and Europe booked at $412-415/mt cfr Nhava Sheva. A few buyers in the secondary market still highlighted prices are far away from the domestic scrap and expect prices to drop further.
On Monday, Turkish ferrous scrap prices in small cargoes dropped to $400-405/mt cfr Turkey levels, while rebar prices for domestic sales too dropped. Market participants expect prices could drop further as Chinese buying of ferrous scrap would slow down further in the next few days.
The Davis Index for UAE-origin HMS 1&2 (80:20), Monday, was at $355/cfr Nhava Sheva unchanged from Friday. Offers for HMS #1, though, remained at $370-380/mt cfr Nhava Sheva.
The daily Davis Index for US-origin HMS 1&2 (80:20), Monday, dropped to $366.79/mt cfr Nhava Sheva, down $3.21/mt. Domestic scrap equivalent priced at Rs26,000-26,500/mt delivered Mumbai consumer remained competitive against imported.
In China, ahead of the spring festival, which is a traditional off-season, China’s manufacturing purchasing managers index (PMI) dipped to 51.3 in January. Mills are expected to turn active for exports post-Lunar New Year holidays. On Monday, Q235 150mm square billets prices in China remained stable at CNY3,860/mt ex-works Tangshan including 13pc VAT. Spot prices for Fe 62pc content iron ore marginally rose to $158.5/mt cfr China.
Subcontinent
The daily Davis Index for containerized shredded, Monday, settled at $403.93/mt cfr India subcontinent, down by $11.51/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $369.62/mt cfr India subcontinent, down by $4.14/mt. Improved container availability held freight rates stable this week, while bids for HMS scrap in the subcontinent were under pressure amid weak domestic fundamentals.
($1=Rs72.93)