Despite expectations of active ferrous scrap trades, India buyers failed to match suppliers’ expectations on Monday. The daily Davis Index for containerized shredded, Monday, settled at $453.75/mt cfr Nhava Sheva, up $7.68/mt from Friday. Few trades heard for thin volumes of shredded at $445-450/mt cfr Nhava Sheva. Offers on Monday, however, rose to $460-465/mt cfr Nhava Sheva. Most secondary steel mills shied away from the grade as offers turned unviable.
Chinese steel prices remained bullish while Turkish mills resumed bulk trade at higher prices. Rebar prices in the domestic market in Turkey rose TRY50-70/mt boosting scrap market sentiment. In China, spot iron ore 62pc stayed above $176-177/mt cfr China reaching a 10-year high.
On Monday, shipbreaking scrap prices in Alang remained stable after last week’s price hike. Shortage of domestic scrap and rising demand supported higher prices. Ingot prices in Mandi Gobindgarh rose Rs200-300/mt from Friday to Rs39,700-39,800/mt ($548-549/mt) ex-works. In the second half Monday, prices came under pressure falling to Rs400-500/mt with no demand at higher prices.
Southeast Asian market remained upbeat driven by rising billet trades with Indian mills exporting at higher prices on the resumption of Chinese domestic prices. Offers hovered in the range of $575-580/mt cfr Southeast Asia.
On Monday, Dubai-origin HMS #1 and P&S offered in the range of $420-425/mt cfr Nhava Sheva. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $415/cfr Nhava Sheva, up by $5/mt. Thin trades reported as mills resumed trade to refill inventories amid limited availability of domestic scrap.
The daily Davis Index for US-origin HMS 1&2 (80:20), Monday, rose by $1.43/mt to $413.93/mt cfr Nhava Sheva. A bullish outlook for domestic settlements in March has led to US-based suppliers holding #1 HMS offers above $415-420/mt cfr Nhava Sheva. Container freight on the US east coast, New York to Nhava Sheva rose by $2-3/mt from the prior week to reach over $30/mt.
Trades for West and East African HMS with CI-GI reported around $380-385/mt cfr Nhava Sheva. Buyers resisted offers above $400/mt cfr with bids for cast iron rotors, drums lagging below $400/mt.
On Monday, HMS 1&2 (80:20) from Australia and the UK/EU offered at $410-415/mt cfr Nhava Sheva, depending on quality and destination.
The daily Davis Index for containerized shredded, Monday, settled at $456.71/mt cfr India subcontinent, up by $5.91/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $418.95/mt cfr India subcontinent, up by $2.87/mt. As per Davis Index analysis, container freight rates on the US West Coast to Asia routes have increased and show no signs of easing anytime soon keeping scrap prices high in the subcontinental markets.