Higher finished steel prices boosted demand for imported ferrous scrap as the Indian market resumed trade after New Year break. Some mills are resisting current offer levels but trades in containers are expected to pick up next week as volumes booked in the last couple of weeks were below the requirement of major mills. Heavy fog in North India and rains in some southern region have slowed road transport and reduced domestic scrap trades.
The Davis Index for containerized shredded, Tuesday, settled at $466.25/mt cfr Nhava Sheva, stable from Monday. Offers heard at $470-475/mt cfr Nhava Sheva while buyers bid at $460-465/mt cfr India. Optimism could lead to a rise of $15-20/mt for January shipments in the coming days, believe most traders. The market sentiments were upbeat post the Indian government’s approval for two COVID-19 vaccines, appreciation of the rupee and hike in finished steel prices.
India remains the preferred market for Dubai-based HMS suppliers but trades have slowed. Mills bid $15-20/mt lower than suppliers’ expectations. On the suppliers’ end, there was no selling pressure as they had just returned from holidays. In the absence of fresh offers, the Davis Index for UAE-origin HMS 1&2 (80:20), Tuesday, dropped to $441/mt cfr Nhava Sheva, down $2/mt from Monday. Indian mills have accepted only levels of upto $430-435/mt cfr Nhava Sheva for HMS scrap, said a trader.
The Davis Index for US-origin HMS 1&2 (80:20) settled at $445.75/mt cfr Nhava Sheva, up by $0.75/mt from Monday. Late last week, most US suppliers lifted offers by $15-20/mt on fob and fas basis, which could impact prices on cfr India basis. Suppliers were unwilling for trades at the current bids of $425-435/mt cfr as they await active restocking by mills in the next few days.
In the domestic market, Mandi-based ingot producers expect to gain from the government’s decision to increase local procurement for state-funded projects. More government projects are set to fall under the purview of ‘Policy for Providing Preference to Domestically Manufactured Iron & Steel Products in Government Procurement’ (DMI&SP Policy) after the amendment made by the Indian government took effect on Dec 31, 2020. In Mandi, ingot traded at Rs41,300-41,500/mt ex-works. HMS 1&2 (80:20) prices heard at Rs30,000/mt ($411/mt) delivered Mumbai mill flat from Monday.
Chinese steel prices showed resilence amid expectations of an increase in infrastructure activities. On Tuesday, Q235 150mm square billets prices in China rose CNY20/mt to CNY3,810/mt ex-works Tangshan, including the 13pc VAT.
The Davis Index for containerized shredded, Tuesday, settled at $465.99/mt cfr India subcontinent, down $0.3/mt from Monday. The index for containerized US-origin HMS 1&2 (80:20) settled at $444.83/mt cfr India subcontinent, down $2.55/mt in absence of trades and unavailability of fresh offers post-New Year Holidays.