Demand for imported ferrous scrap increased in India amid limited domestic availability and sustained domestic consumption. Most infrastructure projects are picking up gradually with a positive outlook for the next couple of months. This supported prices to climb further.
The daily Davis Index for containerized shredded settled at $467.5/mt cfr Nhava Sheva on Monday, up by $6.25/mt as no material was available at lower offers. Market participants expect trades at higher prices amid rising offers. On Monday yards from the UK/EU offered shredded around $470/mt cfr Nhava Sheva with buyers mostly away from those levels.
On Monday, Dubai-origin HMS #1 and P&S offered at $425-430/mt cfr Nhava Sheva. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $426/cfr Nhava Sheva. Many Dubai-based suppliers were desperate to sell amid extended silence from buyers leading to deals even at $405-415/mt cfr Nhava Sheva. The index for US-origin HMS 1&2 (80:20), Monday, rose $3.21/mt to $425.71/mt cfr Nhava Sheva. Offers have recovered by $80/mt from their lowest point.
Late last week, turning scrap traded at $395-400/mt cfr Nhava Sheva. Offers for West African HMS for 20-21mt loading with CI-GI were above $395-400/mt cfr Nhava Sheva while LMS bundles from the Middle East traded at $385-390/mt cfr Mundra.
Shipbreaking scrap prices in Alang continued their uptrend and rose by Rs500/mt on Monday to Rs31,900/mt ex-yard. Despite the fear of another wave of the COVID-19 pandemic and related restrictions in major scrap markets, a shortage of material kept prices firm. Ingot prices in Mandi Gobindgarh also increased by Rs500/mt to trade at Rs40,400-40,500/mt ex-works Mandi Gobindgarh.
Chinese steel prices pause rally on weak data
Chinese February PMI fell to 50.6 due to the new year holidays in the month. In the spot market, HRC prices were reported above $710/mt fob. Outlook on Chinese copper and steel prices remained bleak amid heavy pile up of inventories at mills. Australian iron ore with 62pc Fe content remained flat at $176.50/mt cfr China on Monday.
Domestic billet prices dropped to CNY4,270/mt ex-Tangshan including VAT, down CNY30/mt from Friday. A sharp rise in Iranian billet offers kept the Asian billet market afloat. Billet traded above $595-600/mt cfr Southeast Asia. Still, a pause in the Chinese steel price rally has made further price direction unclear.
On Monday, the daily Davis Index for containerized shredded settled at $470.39/mt cfr Indian subcontinent, up by $5.97/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $431.81/mt cfr Indian subcontinent, up by $3.82/mt. Containerized freight rates remained elevated.