Imported ferrous scrap offers in India continued to trend up amid indications that major steelmakers could raise finished steel prices further due to firm raw material prices. Traders were optimistic about a recovery in imported scrap trades as domestic demand continues to outpace supply.
Steel mills, however, are resisting the price levels and hope to lower their import limit.
Secondary steelmakers in Gujarat, Punjab, and Jalna operated at lower capacities to cut their scrap requirements. Demand from Mumbai-based alloy and rebar makers, however, is gradually rising as their inventories have started depleting.
The Davis Index for containerized shredded on Friday settled at $433.75/mt cfr Nhava Sheva, up by just $1.75/mt from Thursday. Prices rose by $21.87/mt from a week ago, despite low trades. There were only a few deals reported early week at $425/mt cfr Nhava Sheva as most mills and suppliers have turned silent. Offers for shredded from the US and Europe/UK on Friday were above $435-445/mt cfr Nhava Sheva.
Asking prices for HMS scrap from Dubai and Kuwait increased as traders anticipate demand to rise further once suppliers in the US, Europe, Latin America, and Australia step away from the market for the new year holidays. The Davis Index for UAE-origin HMS 1&2 (80:20) rose by $23/mt cfr Nhava Sheva from a week ago. On Friday, Dubai suppliers quoted #1 HMS at $415-420/mt cfr Nhava Sheva, but buyers were interested at $405-410/mt cfr Nhava Sheva. Domestic demand for rebar is strong in Dubai, and most traders chose to cater to the domestic scrap consumption.
In Turkey, a few trades for bulk HMS 1&2 (80:20) were reported at prices equivalent to $448-450/mt cfr Turkey, with a $15-20/mt jump in the offers in a single day. The bullish Turkey market sent reverberations to the South Asian markets.
The daily Davis Index for US-origin HMS 1&2 (80:20) settled at $412/mt cfr Nhava Sheva, up by $23.93/mt from the prior week. Offers for containers of the grade were at $415-420/mt cfr Nhava Sheva against bids of $400-405/mt cfr Nhava Sheva. Suppliers from South and West Africa stayed away from the market due to permit issues and low collection rates.
Offers for containerized Australian HMS 1&2 (80:20) were at $405-410/mt cfr Chennai, up by $15/mt from Dec 11. A few trades for Australia and the UK-origin HMS 1&2 (80:20) were at $400-410/mt cfr Nhava Sheva.
The index for #1 busheling settled at $450/mt cfr Nhava Sheva, up by $27/mt from the prior week. The weekly index for Turning scrap was at $379/mt cfr Nhava Sheva, up by $23/mt, with offers at $380-385/mt cfr Nhava Sheva on Friday. Buyers, however, were unwilling to accept current offer levels. P&S scrap offers were at $430-435/mt cfr Nhava Sheva, but in limited volumes, rising by $26/mt from the prior Friday.
A strengthening billet export market could support scrap imports in India. Following the rising futures market in China, prices are expected to rise more in the coming days. In the China domestic market, billet prices gained CNY50/mt to CNY3,740/mt ($572/mt) ex- Tangshan, a record high. Outlook for 2021 remained bullish, offering support to all markets.
Subcontinent
The Davis Index for containerized shredded, Friday, settled at $433.24/mt cfr India subcontinent, up by $1.35/mt from Thursday. The Davis Index for containerized US-origin HMS 1&2 (80:20) rose to $412.24/mt cfr India subcontinent, up by $0.56/mt from Thursday.
($1=Rs73.55)