Indian imported ferrous scrap buyers reduced bids amid weak domestic demand and falling semi-finished steel prices. The Chinese government’s stance to control the steel prices has impacted the market in India as many large-scale mills were earlier bullish on export demand.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, was at $493/mt cfr Nhava Sheva, down $3/mt. From the last week, the index dropped by $2/mt as interest lagged by $10-15/mt from present offers. Offers for HMS #1 from Dubai were above $495-500/mt cfr Nhava Sheva.
Secondary steel furnaces, despite easing oxygen supply have remained away from scrap purchases due to low demand for finished products. Many small-scale mills are on the verge of production shutdowns due to a severe drop in finished steel consumption. Firm raw material prices have pressured margins for these mills.
Offers for containerized shredded declined by $5/mt to $515-520/mt cfr Nhava Sheva on Friday. The Davis Index for containerized shredded, Friday, settled at $514.14/mt cfr Nhava Sheva, down $2.11/mt from a day ago. Bids were below $510/mt cfr Nhava Sheva as most buyers have opted to step back from the market until the steel market revives. From the prior Friday, the index for containerized shredded dropped by $4.61/mt.
The index for US-origin HMS 1&2 (80:20), Friday, settled at $497.5/mt cfr Nhava Sheva, down $2.5/mt as bids dropped on weak domestic fundamentals. Some mills were only interested in loaded material, which has room for negotiation by $10-15/mt over securing it from yards. Others were unwilling to opt for long transit deliveries amid the non-availability of containers and severe logistical challenges.
Most buyers stayed away from purchases of higher-grade scrap like P&S and #1 busheling. Offers for busheling in containers were at $545-550/mt cfr Nhava Sheva. The indexes for P&S and #1 busheling were at $527/mt and $547/mt cfr Nhava Sheva, respectively, down $4/mt from the last week. For West African HMS 20-21mt loading, buying interest was around $460-465/mt cfr Goa and Chennai.
In China, domestic billet prices continued to drop and reached CNY5,070/mt ($788/mt) ex-Tangshan, including VAT, down CNY80/mt from a day ago. In the spot market, rebar prices dropped by CNY33/mt to CNY5,402/mt ex-works. HRC prices, however, paused their decline and turned up marginally by CNY6/mt to CNY5,757/mt ex-works from a day ago. In China, for 62pc Fe, spot iron ore prices settled at $210.8/mt cfr China, down $4.5/mt on Thursday.
Subcontinent
The daily Davis Index for containerized shredded, Friday, settled at $518.21/mt cfr Indian subcontinent, down by $2.42/mt; while that for containerized US-origin HMS 1&2 (80:20) was at $502.66/mt cfr Indian subcontinent, down by $2.37/mt from Thursday.
($1=Rs73.1)