Prices for imported ferrous scrap in India declined on Wednesday following a fall in domestic ferrous scrap and billet prices. Buyers lowered their bids amid low finished steel demand in the country. But as they ramped-up production, major mills booked ferrous scrap on a need basis.  

Despite fewer bids from mills this week, suppliers anticipate a strong market in October and refused to sell current bid levels. Inquiries for imported scrap remains, though, remain high with limited domestic scrap availability.  

 

The daily Davis Index for containerized shredded settled at $313.5/mt cfr Nhava Sheva, down by $1.29/mt. Bids for shredded were at $310-315/mt cfr Nhava Sheva countering offers of $318-320/mt cfr Nhava Sheva. 

 

Few trades with limited volume concluded at prices lower by $3-4/mt than the present levels of $310-312/mt cfr Port Qasim in Pakistan, weighing down bids from India. Buyers could refrain from booking material at present price levels, but yards and traders believe a steep drop in prices seems unlikely. A few suppliers also withdrew offers from the market. 

In the bulk market, offers for HMS 1&2 (80:20) remained in the range of $315-325/mt cfr Kandla with no buying interest at this level. 

 

Indian buyers refrained from trades as domestic rebar prices, specifically in Gujarat, lost another Rs200-400/mt. Mills are unwilling to pay more than $290/mt cfr Nhava Sheva to avoid losses. Prices for domestic billet reported at Rs30,200-30,400/mt ex-works Mumbai, down by Rs200/mt from a day ago. With Chinese HRC suppliers resuming exports to Vietnam and Asian markets, flat steel prices could come under pressure in the coming days. 

 

In the export market, buyers in Thailand and the Philippines purchased billet at $440-445/mt cfr from India and Iran. Indian mills, however, are likely to decrease billet offers to $420-425/mt fob levels.

 

The Davis Index for HMS 1&2 (80:20) of UAE-origin slipped by $1/mt to $297/mt cfr Nhava Sheva, Wednesday. Deals for Dubai-origin HMS 1&2 (80:20) were at $295-298/mt cfr Nhava Sheva. Most mills kept bids at $292-295/mt cfr Nhava Sheva. Dubai-origin #1 HMS traded at $300-303/mt cfr Nhava Sheva despite prior offers of $305-310/mt cfr Nhava Sheva. 

 

The index for US-origin HMS 1&2 (80:20) settled at $297.5/mt cfr Nhava Sheva, down by $0.21/mt from Tuesday. Indian mills placed bids for the UK and US-origin HMS 1&2 (80:20) at $292-295/mt cfr Nhava Sheva. But suppliers believe ferrous scrap prices could receive support in October when demand recovers. Though manufacturing activity has recovered, the generation of scrap remains slow. 

 

HMS 1&2 (80:20) from Europe, South America, and West Africa traded at $290‑295/mt cfr Nhava Sheva Wednesday. A few trades for HMS 1&2 (80:20) from Australia were reported at $295-300/mt cfr Nhava Sheva.

 

Increased recycling activity at Alang is expected to ease the supply of domestic ferrous scrap. But rising COVID-19 cases and non-availability of oxygen cylinders kept market sentiment weak. 

 

Subcontinent

The Davis Index for containerized shredded, Wednesday, settled at $307.86/mt cfr India subcontinent, down by $1.94/mt from Tuesday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $292.28/mt cfr India subcontinental, down by $0.71/mt. 

 

($1=Rs73.49)

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