Indian mills resumed inquiries for imported scrap amid limited supply of domestic scrap strengthening steel prices. Despite a steep jump in COVID-19 infections which is affecting market sentiment, steel prices continued to move up. HRC and CRC prices rose further, while rebar prices reported a rise of Rs800-1,000/mt in a single day on Thursday.
Indian mills opted for purchases of HMS scrap mainly from the short delivery period origins including the UAE, Africa and Latin America, pushing offers further up on tight supply.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Thursday, rose to $430/cfr Nhava Sheva, up by $7/mt. Dubai-origin HMS #1 traded at $435/mt cfr Nhava Sheva, with offers at $440-445/mt cfr Nhava Sheva.
Offers for shredded in containers from the UK/EU were still above $460/mt cfr Nhava Sheva. The Davis Index for containerized shredded settled at $457.5/mt cfr Nhava Sheva, unchanged from Wednesday despite lowered bids due to domestic uncertainty.
The index for US-origin HMS 1&2 (80:20) Thursday settled at $428.25/mt cfr Nhava Sheva, up by $1.25/mt from a day prior. Offers surged as demand improved from the far east Asian markets in Taiwan and Vietnam for the US materials. HMS 1&2 (80:20) was offered at $430-435/mt cfr Nhava Sheva with buyers’ interest around $420-425/mt cfr Nhava Sheva on Thursday.
On Thursday, melting scrap offers in Alang rose by Rs500/mt to Rs34,400-34,500/mt ex-yards. Prices rose by around Rs2,000/mt over this week, now at par with imported scrap materials. Shortage of both, supply and oxygen cylinders, resulted in the closure of some yards. Consequently, scrap and ship plates supply went down, pushing prices up.
Indian primary mills focused on HRC sales where there is a possibility of another price hike this month of around Rs5,000/mt — following international prices.
In China, bullish demand for high-grade iron ore and competition among steel mills to secure supply has pushed iron ore prices up. Spot imported iron ore 62pc ferrous content prices maintained an uptrend and are expected to near $175/mt cfr North China on Thursday amid strengthened steel futures.
Following a jump in NMDC’s prices for iron ore fines, Sponge iron prices in various states rose by Rs500-1,000/mt which prompted furnaces to shift their attention to ferrous scrap from Sponge iron purchases.
The daily Davis Index for containerized shredded, Thursday settled at $452.35/mt cfr Indian subcontinent, down by $0.84/mt from a day prior; while that for containerized US-origin HMS 1&2 (80:20) was at $427.81/mt cfr Indian subcontinent, up by $1/mt from Wednesday.