Imported ferrous scrap offers to India trended up amid strong global cues, which kept buyers away despite strong domestic fundamentals. Also, uncertainty around the shipment of materials ahead of winter break in most supplier countries kept trades on hold. The news about the UK government accepting Pfizer’s vaccine on COVID-19, which claims to be 95pc effective infused positive sentiments in the market. Shipping lines tried to secure empty containers on the US-Asia route and rejected some deliveries due to container shortage and vessel delays.
In Turkey, the Davis Index for US-origin HMS 1&2 (80:20) rose to $359.7/mt cfr Turkey, rising $2.2/mt from the prior day. Most suppliers focused on Turkish bulk markets. Demand for Turkish finished steel remained bullish pushing prices up by $20-25/mt in a week.
The Davis Index for containerized shredded on Wednesday settled at $378.88/mt cfr Nhava Sheva, up by $6.02/mt from Tuesday, very few offers are active amid tight supply. Most traders and suppliers having stocks and containers both in hand indicated that trades below $385/mt cfr Nhava Sheva are hardly possible. Some remained cautious citing prices are beyond viable levels.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $362/mt cfr Nhava Sheva, up by $5/mt from Tuesday. Offers for containerized #1 HMS without the cast and galvanized iron from Dubai were at $365-370/mt cfr Nhava Sheva on Wednesday, with a few deals reported at $365/mt cfr Nhava Sheva.
The Davis Index for US-origin HMS 1&2 (80:20) settled at $361.43/mt cfr Nhava Sheva on Wednesday, up by $4.29/mt from Tuesday. Offers for the grade in containers heard at $360-365/mt cfr Nhava Sheva, depending on quality.
The weekly Davis Index for cast iron, rotors, and drums on Wednesday, settled at $386/mt cfr Nhava Sheva, up by $8/mt, with a few containerized trades reported in the range $383-387/mt cfr Nhava Sheva. Most suppliers refused to put out stocks of cast rotors and drums for sale as they anticipate prices to cross $400/mt cfr Nhava Sheva in the coming days.
Billet and HRC prices soar
Following high imported scrap prices, domestic billet prices in India also increased. A few mills are even targeting $500/mt fob India levels for billet exports from the Southern region. A Gujarat-based IF billet maker sold billets at $480/mt fob India on Nov 30. Chinese HRC prices reported around $590-610/mt fob depending on the grade, gaining $40/mt in the last two weeks.
Indian HRC prices too have hit almost two year’s high. Most primary steelmakers like Tata, JSW and Sail have raised prices by Rs2,000-2,500/mt for December bookings.
Subcontinent
The Davis Index for containerized shredded, Wednesday, settled at $379.45/mt cfr India subcontinent, up by $6.14/mt from Tuesday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $362.35/mt cfr India subcontinent, up by $4.62/mt from Tuesday.
($1=Rs73.79)