Mills in India booked trades for imported ferrous scrap, especially HMS for immediate requirements. Trades were reported from the UAE and Africa as they matched expectations. Bids remained below $10/mt from current levels. Market participants await clarity on domestic monthly settlements for September in the US markets.
Prices declined in China, but sentiments remained positive in India as participants expected steel prices to remain firm for September deliveries. The Indian market could witness an increase in trade activities as monsoon recedes which could lead to an improvement in production rates over the next two months.
The daily Davis Index for containerized shredded, Friday, dropped by $0.75/mt to $531.25/mt cfr Nhava Sheva. The index was up by $1.25/mt from last Friday. Offers to India remained elevated on expectations of an improvement in demand in Pakistan and Bangladesh. Indian secondary mills remained reluctant to buy ferrous scrap priced above $500/mt cfr Nhava Sheva and focused on HMS trades. Only alloy makers who need shredded on regular basis made purchases to restock on low inventories, believed traders.
The daily Davis Index for UAE-origin HMS 1&2 (80:20) inched down amid weak domestic cues to $478/mt cfr Nhava Sheva by $2/mt on Friday. The index was up by $3/mt from prior Friday.
UAE-origin #1 HMS was sold in small quantities in the range $485-490/mt cfr Nhava Sheva through the week on tight availability for prompt deliveries. Stable rebar demand in Mumbai supported prices.
The Davis index for containerized P&S was stable at $533/mt cfr Nhava Sheva from last Friday, while the index for #1 busheling dropped by $4/mt to $546/mt from Aug 13. Inquiries for prime grades remained scarce as mills found it unattractive.
Domestic melting scrap prices in Alang dropped on Friday, as yards liquidated piled up inventories due to the 20-day transporters’ strike. Melting scrap traded at Rs36,000/mt ex-Alang, down Rs1,000/mt since trades resumed. In Mumbai, the asking prices for rebar dropped by Rs300/mt on Friday to Rs50,400/mt ex-works, yet rebar prices were higher than prior Friday on stable demand.
In Mandi Gobindgarh, ingots traded at Rs45,800/mt ex-works, marginally down by Rs100/mt and flat as compared to last Friday. Demand for rebar remained low in North India. In Chennai, mills preferred domestic scrap and trades for imported scrap remained scarce.
Weakening of Chinese steel prices had little impact as exports from the country remained almost at a halt due to potential export taxes.
International iron ore prices were on a recovery on Friday after a sharp plunge on Thursday. For Fe 62pc daily spot price recovered by $6.5/mt to $137/dmt cfr North China from the previous day. Finished steel futures also recorded an uptick gain of around 2-3pc on Friday.
The daily domestic billet price in China on Friday dropped by CNY30/mt to CNY4,880/mt ($751/mt) ex-Tangshan inclusive of VAT. Billet prices in China dropped by CNY210/mt from last Friday. Bids for imported billet thus dropped below $660/mt cfr China resulting in a decline in Indian export offers on fob basis.
The daily Davis Index for containerized shredded on Friday, settled at $537/mt cfr Indian subcontinent, down by $0.3/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $492.88/mt cfr Indian subcontinent, up by $0.73/mt.