Indian steel mills accepted higher imported ferrous scrap offers amid an uptick in demand. The government is optimistic about an improvement in the COVID-19 situation despite higher infection rates in a few states. Many suppliers indicated a willingness to lower offers to meet bid levels resulting in increased trades on Tuesday.
In Turkey, scrap deals were limited as mills sought clarity on finished steel prices. The Chinese market has returned stronger than expected while Turkish mills too have accepted slightly higher prices in recent bulk deals. The index for US-origin HMS 1&2 (80:20) settled at $ 284.88/mt cfr Turkey, up $1.96/mt from last Friday.
The Davis Index for containerized shredded settled at $306.13/mt cfr Nhava Sheva, up $0.52/mt from Monday. On Tuesday, though offers of UK-origin shredded were at $308-310/mt cfr Nhava Sheva, mills were interested in $305/mt cfr Nhava Sheva. UK yards offered shredded at $310-315/mt cfr Nhava Sheva amid a gradual increase in inquiries.
“A few deals concluded though there is no aggression from either side. Strong demand is less likely until construction projects pick pace. Many are still not fully operational as the outlook for the rest of 2020 is not much optimistic. Maybe 2021 would be the market everyone is waiting for,” said a trader.
The Davis Index for HMS 1&2 (80:20) from UAE, Tuesday, settled at $290/mt cfr Nhava Sheva, up by $2/mt from Monday. Deals for Dubai-origin HMS 1&2 (80:20) were at $290/mt cfr Nhava Sheva. Some offers were even heard at $295-300/mt cfr Nhava Sheva, up by $5/mt from late last week. Offers for containerized #1 HMS from Dubai were above $300-305/mt cfr Nhava Sheva on Tuesday.
Most Dubai suppliers were keen on offering more HMS in India over other Pakistan. This, mainly since shredded seemed to be more in demand in Pakistan.
HMS 1&2 (80:20) from South America traded at $285-290/mt cfr Nhava Sheva, up by $5/mt while South African HMS 1&2 (80:20) was offered at $295-300/mt cfr Nhava Sheva.
In the domestic scrap market, prices registered an uptick again on Tuesday gaining around Rs300/mt on an average in most regions. With demand on the path to recovery, mills have returned to the market paying slightly higher for HMS scrap than the prior week. The secondary steel sector, however, is still struggling with weak rebar demand from the real estate and construction sectors.
No bulk trade for US-origin HMS 1&2 (80:20) materialized as buyers refused to bid above $295/mt cfr Kandla against offers of $300-305/mt cfr Kandla on Friday.
In the export market, mills targeted $450-455/mt cfr Southeast Asia for square billets. Billet offers increased on the back of the Chinese domestic billet prices strengthening post-Golden Week Holiday. Chinese domestic rebar and HRC prices also rose amid increased restocking.
Expectations of recovery in ferrous scrap demand in Asian markets gave subcontinental indexes a lift on Tuesday. The Davis Index for containerized shredded, Tuesday, settled at $299.67/mt cfr India subcontinent, up by $1.05/mt from Monday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $282/mt cfr India subcontinental, up by $1.62/mt.