Indian ferrous scrap importers have slowed bookings amid bullish offer prices. Mills thus opted for domestic ferrous scrap. Since early November, imported ferrous scrap prices have increased by $70-75/mt or by 20-25pc, making it economically unviable for many secondary mills. Prices have increased due to a supply crunch. Major shipping lines have decided to lower the number of free days at some destinations, particularly in Asia, effective Jan 1, 2021, to deal with the shortage of containers. Mediterranean Shipping Company has lowered free days to 12 days in India and Pakistan; and 10 days in Bangladesh from the earlier 14 days. 

 

Rebar prices in India rose Rs4,000-4,500/mt ($53-61/mt) since early December. 

 

The weekly Davis Index for cast iron, rotors, and drums on Wednesday, settled at $403/mt cfr Nhava Sheva, up by $17/mt. A few containerized trades were reported late last week and early this week at $395-400/mt cfr Nhava Sheva. Offers then increased as suppliers tried to make the most of the bullish market. Cast rotors and drums asking prices are likely to cross $410/mt cfr Nhava Sheva in the coming days.

 

In Turkey, the daily index for bulk HMS 1&2 (80:20) touched $375/mt cfr Turkey, hitting almost a six-year high. Thus, offers in South Asia surpassed the prior peak of March 2018. 

 

The Davis Index for containerized shredded on Wednesday settled at $398.1/mt cfr Nhava Sheva, up by $1.16/mt from Tuesday. Offers on Wednesday were above $400-405/mt cfr Nhava Sheva, mainly since trades were reported at these prices in Pakistan. A few offers were also at $405-410/mt cfr Chennai.  

 

The Davis Index for UAE-origin HMS 1&2 (80:20), Wednesday, settled at $377/mt cfr Nhava Sheva, up by $3/mt from Tuesday and up by $14/mt since the beginning of the month. Bids for mixed HMS were at $370/mt cfr Nhava Sheva. Offers for containerized #1 HMS without cast and galvanized iron from Dubai were at prices above $385-390/mt cfr Nhava Sheva. 

 

The Davis Index for US-origin HMS 1&2 (80:20) was at $375/mt cfr Nhava Sheva on Wednesday, up by $1.67/mt from Tuesday. Fresh offers for containerized scrap for January-end shipments were at $375/mt cfr Nhava Sheva, with buying interest still lagging at $365/mt cfr Nhava Sheva. Bulk suppliers from the US and Australia were away from the market. But some market participants believe trades for bulk shredded in the coming days could be at prices above $400/mt cfr India.

 

Semi-finished steel demand in Asia has recovered, but Indian mills opted to cater to the domestic market. High imported scrap prices pushed up billet export prices, with very few Indian mills offering material at prices over $520-530/mt fob India. International iron ore prices (Australian 62pc Fe content) maintained an uptrend reaching $149.5/mt cfr China on Tuesday. Domestic billet prices in China reported at CNY3,660/mt ex Tangshan. 

 

Subcontinent

The Davis Index for containerized shredded, Wednesday, settled at $398.20/mt cfr India subcontinent, up by $0.67/mt from Tuesday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $374.58/mt cfr India subcontinent, up by $1.58/mt from Tuesday.

 

($1=Rs73.56)

 

Leave a Reply

Your email address will not be published.