Imported ferrous scrap demand in India picked up as large-scale mills found support from the export market. Primary mills raised their asking prices for billets and HRCs in the overseas markets by $50-100/mt in the last two days following global cues. Importers are expected to resume trades actively next week when most suppliers from the UAE return from the Eid holidays.
The weekly Davis Index for cast iron, rotors, and drums, Wednesday, settled at $507/mt cfr Nhava Sheva, up by $25/mt. Improved demand from the casting industries aided demand. Containerized trades for the grade were heard at $505-506/mt cfr Mundra.
Offers for containerized shredded surpassed the previous peak seen early this year, hitting record-high prices. The Davis Index for containerized shredded, Wednesday, settled at $508.93/mt cfr Nhava Sheva, up by $11.43/mt. Trades for containerized shredded in limited volumes were reported at $508-510/mt cfr Nhava Sheva.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Wednesday, settled at $477/mt cfr Nhava Sheva up $9/mt from Tuesday. Offers for HMS #1 from Dubai-origin spiked to $480-485/mt cfr Nhava Sheva on tight supply and strong global cues. Chennai-based rebar makers bought the UAE-origin #1 HMS at $490/mt and $495/mt cfr Chennai on Wednesday.
The index for US-origin HMS 1&2 (80:20), Wednesday, settled at $4/78.21mt cfr Nhava Sheva, up by $2.25/mt from Monday.
On Wednesday, melting scrap offers in Alang rose by Rs 200-300/mt to Rs39,500-39,600/mt ex-yards. Dismantling activities at some yards have resumed with improved oxygen availability. Yet, daily scrap generation through breaking operations was slow.
Rebar prices in Mumbai showed a gradual uptick following improving demand and scaled to Rs51,000-51,100/mt ex-works while ingot trades in the Mandi Govindgarh were at Rs46,600-46,700/mt ex-works.
Slowing of finished product trades and suspension of production at auto plants weighed down demand for imported scrap. But a jump in iron ore after NMDC raising prices by over 30pc and consequent rise in sponge iron prices could lift imported scrap inquiries again in India, believe traders.
A rise in Southeast Asian billet offers to China, where the appetite for imports is strong, kept Indian exporters optimistic. On Wednesday, offers for Southeast Asian billets surged to $790-800/mt cfr China. But offers by Indian sellers were lower by $50-70/mt and could rise in the coming days. Indian mills are eyeing export orders at $680-700/mt fob India.
In China’s domestic market, billet prices rose by CNY100/mt, hitting a record high of CNY5,770/mt ($896/mt) ex-works Tangshan. For 62pc Fe, spot iron ore prices were around $228-230/mt cfr China.
The daily Davis Index for containerized shredded Tuesday settled at $512.44/mt cfr Indian subcontinent, up by $12.24/mt; while that for containerized US-origin HMS 1&2 (80:20) rose to $485.97/mt cfr Indian subcontinent, up by $9.60/mt from Tuesday.
The weekly containerized freight rates maintained with Davis Index, from New York port to India, Pakistan, and Bangladesh were at $53.73/mt, $49.44/mt, and $81.68/mt, respectively.