Demand for imported ferrous scrap in India remained slow. Most mills opted for domestic scrap while better margins due to an increase in finished steel prices encouraged a few mills to enquiry for imported ferrous scrap.
Lockdown and restrictions in major states have triggered a return of migrant labourers to their hometowns, which has impacted the operations of some steel mills. A few mills have announced maintenance activities and shut down productions. Scrap buyers have decided to stay in ‘wait and watch’ mode to gain clarity on the domestic situation before resuming scrap imports.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Tuesday, settled at $425/cfr Nhava Sheva, down $1/mt. Most mills either placed low bids or refuse to book materials. For traders and importers finding empty containers has become an additional task resulting in limited trades.
Dubai-origin HMS #1 offers unchanged at $435-440/mt cfr Nhava Sheva. Supply from the UAE remains tight keeping prices elevated.
Offers for shredded in containers from the UK remained at $460-465/mt cfr Nhava Sheva. Buyer sentiment is weak in India amid a declining rupee. The Indian rupee breached the Rs75 mark against the US dollar on Tuesday. Few sellers offered materials at slightly lower prices to encourage trades. Mills withdrew bids to gauge the price direction over the week.
The index for US-origin HMS 1&2 (80:20) Tuesday settled down by $1.25/mt to $431.25/mt cfr Nhava Sheva from Monday, while trades were suspended for long period deliveries. For the US suppliers, Taiwan and Vietnam remained the most preferred destinations over South Asian buyers.
On Tuesday, melting scrap offers in Alang rose by Rs300/mt to around Rs33,300/mt ex-yard. Four days of bank holidays this week have considerably reduced working hours in India slowing trades and bank settlements.
In China, bullish demand for high-grade iron ore and competition among steel mills to secure supply has pushed up iron ore prices. Amid continued production curbs in Tangshan, spot imported iron ore 62pc ferrous content prices jumped over $175/mt cfr North China. On Monday, billet prices were at CNY4,890/mt ex Tangshan, down by CNY170/mt.
The daily Davis Index for containerized shredded on Tuesday settled at $456.33/mt cfr Indian subcontinent, down $0.49/mt from Monday. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $430.31/mt cfr Indian subcontinent, down by $0.78/mt from Monday.
Weekly containerized freight rates maintained by Davis Index showed a marginal dip after a sharp hike in the earlier weeks to $54.61/mt, $65.09/mt, and $81.83/mt from New York to India, Pakistan, and Bangladesh, respectively.