Indian steel mills, automakers and manufacturers have gradually restarted activities. But the possibility of the lockdown extending cannot be discounted with the number of new cases in some key financial states still surging. Many mills have resumed operations. End-user demand remains subdued across the country.
Despite low scrap inventories, importers were hesitant to replenish their dipping stocks amid uncertainties surrounding demand recovery. But the economic stimulus of Rs20,000bn has given some hopes for these importers. Many mills hold excessive stocks of finished steel in hand.
The daily Davis Index for containerised shredded settled unchanged at $258/mt cfr Nhava Sheva on Friday. Bids from mills dropped below $250/mt cfr Nhava Sheva. Most suppliers preferred to sell in Pakistan where buyers are accepting higher offers than Indians.
India’s leading ferrous scrap supplier, UAE has announced a temporary ban on exports of ferrous scrap for four months. This is likely to create a shortage of supply in Indian markets which could halt the downfall in prices. Offers for HMS 1&2 (80:20) from UAE were reported at $240-245/mt cfr Nhava Sheva. The daily Davis Index for containerised HMS 1&2 (80:20) of UAE-origin settled unchanged at $245/mt cfr Nhava Sheva on Friday.
South African HMS 1&2 (80:20) was offered at $240-242/mt cfr Nhava Sheva, down by $8-10/mt from the prior week. Brazilian HMS 1&2 (80:20) traded at $235-240/mt cfr Nhava Sheva. Bids for the UK and Europe-origin HMS 1&2 (80:20) were at $230-235/mt cfr Nhava Sheva.
Australia-origin HMS 1&2 (80:20) was offered at $240-245/mt cfr Nhava Sheva and Mundra, down by $5/mt from the prior week.
In Goa, mills resumed enquires for West African HMS 1&2 (80:20) and bids were heard at $235-240/mt cfr Goa.
The index for busheling in containers settled at $278/mt cfr Nhava Sheva while the index for PS settled at $266/mt cfr Nhava Sheva, up by $5/mt and $6/mt, respectively, from the prior week. No trades were heard in the markets.
Market update East Asia
The daily Davis Index for containerised HMS 1&2 (80:20) settled at $230/mt cfr Taiwan on Friday, up by $2/mt from the prior day. US and Australian suppliers offered HMS 1&2 (80:20) at higher prices citing a rise in bulk scrap imports from Vietnam and South Korea.