There were only a few sellers and buyers in the market for imported ferrous scrap in India. Outlook for steel demand is weak due to the resurgence of the COVID-19 pandemic, and the approaching holidays of Holi and Easter holidays.
Amid firm offers, the daily Davis Index for UAE-origin HMS 1&2 (80:20), Thursday, settled at $395/mt cfr Nhava Sheva, up by $2/mt. A limited volume of Dubai-origin HMS #1 and P&S sold at around $400/mt cfr Nhava Sheva. Still, many furnace owners were unsure of steel prices supporting imported scrap purchases in the near term.
The daily Davis Index for containerized shredded inched up by $1.25/mt to $425/mt cfr Nhava Sheva. Most secondary mills kept bids at $405-410/mt cfr Nhava Sheva, but suppliers resisted these levels. Offers for shredded were in the range of $435-445/mt cfr Nhava Sheva.
The daily index for US-origin HMS 1&2 (80:20) settled at $406.5/mt cfr Nhava Sheva, up by $1.96/mt. With most US suppliers returning to overseas markets, prices could come under pressure. Offers for HMS 1&2 (80:20) from the UK and Australia were above $400-405/mt cfr Nhava Sheva.
On Thursday, shipbreaking melting scrap offers in Alang were unchanged on subdued demand on approaching Holi holidays. Melting prices were at Rs30,300-31,300/mt ex-Alang. A few participants resumed trades in Mandi Gobindgarh despite a strike due to GST-related issues. In Mumbai, slow demand and rising concerns of a resurgence of COVID pulled rebar prices down by Rs900/mt in a single day, impacting scrap bookings.
In China, recovering steel demand and strengthening sentiments led to a rise of 3-4pc on Thursday. Spot imported iron ore 62pc ferrous content remained rangebound around $160.5/mt cfr North China. With rising demand, inventories continued to dip and boosted prices.
Domestic billet prices in the retail market increased by CNY50/mt to CNY4,650/mt ex-Tangshan on Thursday, including VAT. Rebar prices were at CNY4,790/mt, up by CNY20/mt. HRC prices rose by CNY40/mt to reach CNY5,140/mt ex-works.
The impact of a large vessel called ‘Ever-Green’ stuck in the Suez Canal was limited on the steel prices. But there were transportation delays on European routes. Most parts of Europe are still under lockdowns and suppliers are unlikely to offer materials at lower prices. Buyers with immediate requirements could accept present price levels.
On Thursday, firm offers pushed the daily Davis Index for containerized shredded to $419.73/mt cfr Indian subcontinent, up by $2.39/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $401.43/mt cfr Indian subcontinent, up by $1.71/mt from a day ago.