Demand for imported ferrous scrap in India remained subdued with most steelmakers aiding the fight against COVID-19 by ramping up oxygen production and supply for medical use. Still, offers were firm on strong global cues and high container freight charges. Primary mills explored export opportunities. Production in the secondary steel sector has dropped by over 25-30pc in most states.
Offers for containerized shredded from the UK/EU were unchanged from last week in the range of $460-465/mt cfr Nhava Sheva. The Davis Index for containerized shredded settled at $459.25/mt cfr Nhava Sheva, unchanged from Monday. There were only a few bids at $452-455/mt cfr Nhava Sheva.
The index for US-origin HMS 1&2 (80:20), Tuesday, settled at $433.75/mt cfr Nhava Sheva, up by$0.75/mt from Monday. The daily Davis Index for UAE-origin HMS 1&2 (80:20) was at $430/cfr Nhava Sheva on Tuesday, up by $1/mt. Offers for Dubai-origin HMS #1 were unchanged at $440/mt cfr Nhava Sheva. South India and Gujarat-based scrap-consuming steel mills are expected to book considerable volumes amid limited inventories.
Bids for Latin American HMS 1&2 (80:20) were at $420-425/mt cfr Nhava Sheva on Tuesday.
On Tuesday, melting scrap offers in Alang rose further by Rs500-700/mt to Rs37,200-37,300/mt ex-yards. Many yards have been forced to shut operations due to oxygen shortage, and recycling activities at Alang came to a standstill.
In Mumbai, rebar prices were unchanged at Rs49,500/mt ex-works, with trades for domestic HMS 1&2 (80:20) in the range Rs31,000-31,300/mt delivered mills. Stricter movement restrictions to contain the virus in Maharashtra has impacted inter-district transport and the availability of laborers.
In China, spot iron ore prices were above $190.9/mt cfr North China for 62pc Fe scrap content. Stricter emission control restrictions in the Chinese steel hub of Handan city could impact production. Steel prices in China could to stay strong and support Indian mills to target better prices in the export markets.
The daily Davis Index for containerized shredded Tuesday settled at $464.16/mt cfr Indian subcontinent, up by $1.76/mt; while that for containerized US-origin HMS 1&2 (80:20) was at $441.06/mt cfr Indian subcontinent, up by $1.08/mt.