Indian imported ferrous scrap buyers were reluctant to book amid domestic uncertainty. Mills lowered their bids sharply amid falling semi-finished and finished steel prices. Despite firm Turkish bulk ferrous scrap prices, Indian prices dropped over $15/mt in a week for UAE-origin HMS. Deals for material from other countries also remain tepid.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Tuesday, was at $488/mt cfr Nhava Sheva, down $3/mt. Offers for HMS #1 from Dubai were above $495/mt cfr Nhava Sheva. Mills were looking at loaded materials offered at $480-485/mt cfr Nhava Sheva.
Most ferrous scrap consumers are expecting a correction of $30-40/mt in the near term. The slowdown in construction activities because of extended lockdown restrictions and the impending arrival of monsoon is likely to weigh down on steel demand even more. Large flat steelmakers have also turned cautious about demand sustainability and anticipate a slow June.
Offers for containerized shredded remained firm at $515-520/mt cfr Nhava Sheva. With buyers largely away, the Davis Index for containerized shredded settled at $512.5/mt cfr Nhava Sheva, down $1.25/mt from Monday. Most buyers refused to books shredded on negative sentiments among end-users.
The index for US-origin HMS 1&2 (80:20), Tuesday, settled at $492.5/mt cfr Nhava Sheva, down $3.57/mt as bids lagged on weak domestic fundamentals. Sellers were unable to collect scrap at lower prices amid a very slow collection pace and availability.
On Tuesday, melting scrap offers in Alang dropped bt Rs500/mt to Rs38,500/mt ex-yards. However, supply is tight. In Mumbai, rebar prices were stable at Rs49,200/mt ex-works, while ingot offers in the Mandi Gobindgarh slipped to Rs44,600/mt ex-works, by Rs200/mt on weak demand.
In China, domestic billet prices continued to drop and reached CNY4,940/mt ($771/mt) ex-Tangshan, including VAT, up CNY20/mt from Monday. Spot iron ore prices for 62pc Fe marginally moved up by $3.3/mt above $191.65/mt cfr China on Tuesday. Prices rose on Tuesday after witnessing a sharp drop earlier. In the spot market, rebar and HRC trades were very limited as prices remained largely unchanged at CNY4,910/mt and CNY5,440/mt ex-works, respectively.
The National Development and Reform Commission said that China will strengthen price controls of key commodities in its 14th five-year plan from 2021 to 2025, enabling the industry to cope with abnormal price fluctuations in items like iron ore, copper, and other food commodities.
The daily Davis Index for containerized shredded, Tuesday, settled at $515.63/mt cfr Indian subcontinent, down by $2.09/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $497.53/mt cfr Indian subcontinent, down $3.96/mt from Monday.