Imported ferrous scrap prices in India rose for the third successive week as finished steel prices rose. Most of the steelmakers have ramped up their production volumes and demand for scrap is high. Limited availability of ferrous scrap, globally, along with a tight supply of domestic and sponge iron has pushed up prices in India. Trades, however, remained slow amid festivals in central and western regions of the country. 

 

Subcontinental 

The Davis Index for containerized shredded, Friday, settled at $310.52/mt cfr India subcontinent, up by $1.26/mt from Thursday and $8.24/mt from last Friday. The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $292.09/mt cfr India subcontinent, up by $1.68/mt from Thursday and by around $9/mt from the prior week.  

 

In the bulk market, a cargo of 30,000mt from the US West Coast was offered at $315/mt cfr Kandla for equivalent shredded, however, buying interest remained at lower than $295/mt this week. Scrap trades are expected to pick up but billet export prices have remained flat compared to rise in imported scrap prices which has increased the input cost of steel exporters.  

 

The daily index for containerized shredded settled at $310.11/mt cfr Nhava Sheva on Friday, up by $0.86/mt from a day ago and by $9.73/mt from the prior week. Yards from the US and UK were at $310-313/mt cfr Nhava Sheva on Friday, rejecting bids of $305/mt cfr Nhava Sheva. Indian alloy makers are forced to accept high offers as other South Asia buyers have started bidding higher on stronger Turkish bulk prices.  

 

A steel maker in the South was offered US-origin containerized shredded at around $320/mt cfr Vizag on Friday. A Mumbai-based automaker received shredded offers at $307-312/mt cfr Nhava Sheva and an alloy maker was offered the grade at $310/mt cfr Mundra from a European yard.  

 

The Davis Index for UAE-origin containerized HMS 1&2 (80:20) settled at $292.5/mt cfr Nhava Sheva, up by $7.5/mt from the prior week. UAE suppliers preferred to sell into Pakistan post-Eid as trades are expected to pick up later in India.

 

A few trades for Brazilian and Australian-origin HMS 1&2 (80:20) closed at $280-285/mt cfr Mundra and Nhava Sheva. The weekly Davis Index for UK and Europe-origin HMS 1&2 (80:20) settled at $277/mt cfr Nhava Sheva, up by $5/mt from the prior week. However, UK-origin HMS 1&2 (80:20) was offered at $290/mt cfr Nhava Sheva amid higher prices paid by Turkish buyers. Suppliers in the UK and Europe continue to focus more on Turkish market than South Asia this week.  

 

The index for US-origin HMS 1&2 (80:20) settled at $290/mt cfr Nhava Sheva, up by $0.71/mt from Thursday and up by $9.57/mt from the prior week. The index for South African HMS 1&2 (80:20) settled at $288/mt cfr Nhava Sheva, up by $10/mt from the prior week, though no fresh offers were available in the market amid the ongoing two months ban.  

 

Australia and South American HMS 1&2 (80:20) was traded at $290/mt cfr Chennai, up by $10/mt from the prior week.  

In Goa, mills preferred sponge iron over imported scrap as steel demand remained sluggish. Chennai-based buyers concluded West Africa-origin HMS 1&2 (80:20) at $273-280/mt cfr Chennai, up by $5-7/mt from the prior week.  

 

The weekly indexes for busheling and P&S in containers settled at $325/mt cfr and $310/mt cfr Nhava Sheva, respectively, up by $15/mt and $10/mt from the prior week. Few offers for busheling were at $330-335/mt cfr Vizag.  

The weekly index for Turning scrap rose by another $10/mt to $265/mt cfr Nhava Sheva. Brazilian suppliers refused revised bids from steelmakers and opted to wait as they expect prices to rise next week.

 

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