Indian steel mills witnessed a recovery in finished steel’s demand early this week which improved trades for imported ferrous scrap. Offers rose by $5-10/mt as buyers resorted to restocking scrap inventories. Trades for HMS scrap concluded at higher prices but at a slow pace in the first half of the week but domestic steel prices, especially of billet, lost steam with mixed sentiments about sustainability.
In Turkey, the prices for US-origin HMS 1&2 (80:20) were range-bound at $286-287/mt cfr Turkey. Turkish mills received bulk orders from Southeast Asian markets for rebar with a possibility for scrap prices to climb another $5-10/mt in the coming days. Mills have to book around 20 more bulk cargoes for November and December shipments to support prices, said a trader.
The Davis Index for containerized shredded on Friday settled at $310.5/mt cfr Nhava Sheva, up $1.37/mt from Thursday. Offers for UK-origin shredded were at $310-315/mt cfr Nhava Sheva but there was limited buying interest in the market. A few mills in need for shredded scrap have booked by paying $5/mt higher than prior week.
The Davis Index for HMS 1&2 (80:20) from UAE, Friday, settled at $296/mt cfr Nhava Sheva, up by $2/mt from Thursday. Deals for Dubai-origin HMS 1&2 (80:20) were at $293-297/mt cfr Nhava Sheva. Some offers were even at $298-300/mt cfr Nhava Sheva on Friday, up by $5/mt from late last week. Trades for containerized #1 HMS from Dubai were above $305/mt cfr Nhava Sheva on Friday.
A few containers for the UK-origin HMS 1&2 (80:20) sold at $290-295/mt cfr Nhava Sheva while #1 HMS traded at $305/mt cfr Nhava Sheva.
In India’s domestic market, mills returned earlier this week but had to pay higher for HMS than the prior week. In the later part of th week, prices took a downturn as heavy rains hit parts of India. The secondary steel sector, however, is still struggling with weak demand for rebar from the real estate and construction sectors. If restocking continues, it will keep the market lifted but is expected to slow down early-November due to festivals, said a trader.
Turning scrap traded this week in limited volumes amid an uptick in HMS prices. The weekly index for Turning scrap was at $275/mt cfr Nhava Sheva, up $6/mt from last week. A trader sold Turning at $275-280/mt cfr Chennai.
After a long break, Indian mill resumed trades for premium grades like Busheling and P&S scrap. Busheling was offered at $325-330/mt cfr Nhava Sheva against bids of $320/mt cfr Nhava Sheva while P&S scrap was traded at $310-315/mt cfr Nhava Sheva in thin quantities.
Expectations of recovery in ferrous scrap trades in Asian markets lifted subcontinental indexes. The Davis Index for containerized shredded, Friday, settled at $304.05/mt cfr India subcontinent, up by $1.51/mt from Thursday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $288.43/mt cfr India subcontinent, up by $2.09/mt.