Imported scrap offers in India Wednesday rose following strengthening global cues. Bullish demand from downstream industries pushed up domestic steel prices. But bids from mills lagged expectations resulting in limited trades. Some suppliers held offers to fetch high prices. Trades are expected to gain momentum in the coming days amid lowering inventories. Buyers would be back for a new round of negotiations taking cues from the Chinese market slated to reopen fully in the next week.
The daily Davis Index for containerized shredded, Wednesday, settled at $435.25/mt cfr Nhava Sheva, up by $4/mt. The index rose by almost $40/mt from Feb 9. Offers to Pakistan rose to $450-455/mt cfr Port Qasim, this led Indian mills to stay away from the negotiations with interest upto $430-435/mt cfr Nhava Sheva.
The most preferred supplier origin for HMS trades, UAE witnessed a further rise on improved trades. Dubai-origin HMS #1 and P&S were offered in the range of $400-410/mt cfr Nhava Sheva. The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $399/cfr Nhava Sheva, up by $4/mt.
On Wednesday, a few ship-breaking yards remained closed to mourn the sad demise of the president of the recycling association, Raj Bansal. Ship scrap prices were at Rs28,600-28,800/mt ex-Alang. Ingot prices in Mandi Gobindgarh rose by Rs600/mt from Tuesday to reach Rs38,600/mt ($532/mt) ex-works. Recovery in domestic billet prices helped mills to focus on domestic sales. Imported billet prices remained stable at $555-560/mt cfr Southeast Asia, unattractive for exporters.
Rising sponge iron prices and demand from casting/moulding units pushed cast iron scrap trades in India. The weekly Davis Index for cast iron, rotors, and drums on Wednesday, rose by $24/mt to $415/mt cfr Nhava Sheva. Offers for Cast rotors heard above $420-425/mt cfr Nhava Sheva amid container shortage, short supply and strong domestic demand. Sellers expect prices to rise further on strong demand.
The daily Davis Index for US-origin HMS 1&2 (80:20), Wednesday, rose by $6.87/mt to $402.5/mt cfr Nhava Sheva. Amid domestic demand in the US, suppliers are likely to offer #1 HMS below $410/mt cfr Nhava Sheva. While Bangladesh mills were willing to pay $430-440/mt cfr Chattogram.
A possibility of resumption in Chinese buying for P&S grade at $455-465/mt cfr China, boosted supplier sentiment.
The daily Davis Index for containerized shredded, Wednesday, settled at $440.39/mt cfr India subcontinent, up by $2.62/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $406.31/mt cfr India subcontinent, up by $5.79/mt. Drop-in containerised freight rates are unlikely until March, thus keeping imported scrap prices high in the coming days.