Indian mills preferred competitively priced domestic scrap over imported. Tight domestic supplies and rising prices could support increased imported bookings in the coming days. Traders opined that prices have neared the bottom and should not drop further.
The daily Davis Index for containerized shredded, Monday, settled at $397.5/mt cfr Nhava Sheva, down $5/mt from Friday. Secondary steelmakers were unwilling to bid above $385-390/mt cfr Nhava Sheva for shredded scrap. While steel alloy producers with low inventories are likely to accept present levels.
On Monday, the rise billet and rebar prices in Mandi and Gujarat amid improved demand boosted traders sentiments. Tight availability of domestic scrap pushed shipbreaking scrap upto Rs400-600/mt on Monday.
Dubai-origin HMS #1 traded in the range of $350-360/mt cfr Nhava Sheva. The Davis Index for UAE-origin HMS 1&2 (80:20), Monday, settled at $343/cfr Nhava Sheva, down $3/mt from Friday.
The daily Davis Index for US-origin HMS 1&2 (80:20), Monday, dropped by $2.5/mt to $357.5/mt cfr Nhava Sheva. Offers for #1 HMS were at $365-370/mt cfr Nhava Sheva.
Billet prices in the export markets showed signs of stabilizing. Indian mills stayed away from exports and focused on the domestic market. Offers were equivalent at $540-550/mt cfr SE Asia. Iranian billet offers at $515-520/mt fob Iran, weighing down sentiment in SE Asia.
In China, steel prices were mixed ahead of the Spring Festival. Market participants are uncertain about the price direction after the Chinese New Year holidays. Prices for Q235 150mm square billets prices in China were unchanged at CNY3,850/mt ex-works Tangshan, including 13pc VAT.
Spot imported iron ore prices rebounded amid rising futures and forecast of tight supply post-Chinese New Year holidays. On Monday, spot imported prices for Fe 62pc content rose by over $3.5/mt to $160.5/mt cfr China.
The daily Davis Index for containerized shredded, Friday, settled at $389.44/mt cfr India subcontinent, down by $4.81/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $359.49/mt cfr India subcontinent, down by $2.30/mt. Containerized freight rates increased by $10-15/mt from the prior week.