Offers for containers of imported ferrous and cast-iron scrap grades in India remained elevated on limited supply. Trading has picked up in other markets ahead of the Eid holidays early next week.
Indian mills either booked limited volumes or kept bids $40-50/mt below the present offer levels amid a wide price gap between imported and domestic material. Sellers thus focussed more on the other two subcontinental markets. Heavy rains in parts of the country, depreciated currency, and COVID-19-related uncertainty also dampened sentiment.
The weekly Davis Index for cast iron, rotors, and drums, Wednesday, settled at $502/mt cfr Nhava Sheva, up by $5/mt. Bids from Indian buyers were at $495/mt cfr Nhava Sheva, which sellers refused to accept on tight supply and container shortages. Offers were in the range of $505-510/mt cfr Nhava Sheva with a few trades reported at $500-505/mt cfr Mundra. In the domestic market, cast iron scrap was offered in Mandi Gobindgarh at Rs37,000/mt delivered mills on Wednesday, largely unchanged from the prior week.
Offers for HMS remained elevated despite bids lagging from secondary mills. The daily index for UAE-origin HMS 1&2 (80:20) rose by $5/mt on Wednesday to $480/mt cfr Nhava Sheva to match equivalent prices in Pakistan and Bangladesh markets. Indian domestic steel prices were under pressure, keeping imports sluggish. In the UAE market, four days of official holidays next week could keep activities slow over July 17-25.
Indian mills resumed inquiries for imported shredded as they expect prices to be on a downward movement in the coming days. But most sellers diverted supplies to Pakistan keeping asking prices in line with other subcontinental markets for Indian buyers. The daily Davis Index for containerized shredded on Wednesday, was unchanged at $540/mt cfr Nhava Sheva. Offers were above $545/mt cfr Nhava Sheva despite bids of around $530-535/mt cfr Nhava Sheva. The Davis Index for US-origin HMS 1&2 (80:20) rose by $1.5/mt to $490/mt cfr Nhava Sheva, despite a silent market.
In the Alang shipbreaking market, melting scrap offers on Wednesday dropped by Rs900/mt to Rs33,800/mt ex-yards. In Mumbai, rebar prices on Wednesday were unchanged from a day ago, while a few offered it at Rs47,600/mt ex-works after discounts. In Mandi, ingot prices dropped by Rs500-700/mt in a single day.
On Wednesday, Chinese steel futures for rebar and HRC showed mixed trends. Domestic billet prices were at CNY5,120/mt ex-Tangshan inclusive of VAT on Wednesday, up CNY20/mt from a day ago. International iron ore Fe 62pc prices were almost flat at $217.85/mt cfr North China. Market participants are unclear about the price trend in the near term due to strict production cuts and a new export policy by the government.
Chinese mills accepted billets at $700-705/mt cfr China, boosting Indian export expectations. Most Southeast Asian countries are under COVID-19-related restrictions, which has impacted activities.
The daily Davis Index for containerized shredded settled at $545.06/mt cfr Indian subcontinent, unchanged from a day prior; while that for containerized US-origin HMS 1&2 (80:20) settled at $503.52/mt cfr Indian subcontinent, up by $1.49/mt from Tuesday. The container freight rates were largely stable this week.