Offers for imported ferrous scrap in India rose as a supply crunch in major supplier countries continued to persist. Buyers, however, largely remained away from the market. 

On April 21, the Indian government released a notification extending waiver on detention and demurrage charges till the period of lockdown. But traders and recycling bodies state major shipping lines like CMA, MSC and Maersk were not ready to waive off these charges. Around two months of cargo remains piled up at ports.

 

There were very limited offers in the market, but no mill was ready to place bids. Bookings for imported ferrous scrap could remain subdued for another two months at the minimum, shared a trader. Presently, Pakistan and Bangladesh are paying higher than any other Asian market, albeit limited demand due to Ramadan holidays.  

 

The weekly Davis Index for containerised shredded increased by $4/mt to $265/mt cfr Nhava Sheva on Friday. Shredded in containers was offered at $265-270/mt cfr Nhava Sheva, but no buyers or traders were ready for transactions at those prices. Very few bids were heard at $255-260/mt cfr Nhava Sheva.

 

Amid tightening global scrap supply, the Davis Index for containerised P&S 5ft settled at $270/mt cfr Nhava Sheva, up by $5/mt from the prior week. However, no trades were reported. Busheling offered in the range $275-280/mt cfr Nhava Sheva, up by $5-10/mt. The weekly index for turning scrap settled at $230/mt cfr Nhava Sheva, up by $2/mt.

 

US-China trade tensions have begun to resurface and it is believed the steel sector in India and Vietnam could become the biggest beneficiaries. Major South Korean steelmakers are mulling to shift their bases out of China. This should boost the Indian steel sector in the medium or long term, said a trader. 

 

HMS scrap offers limited on short supply 

At present, only Latin America and Australia suppliers are offering material. Offers from other major supplier countries like the UAE, South Africa and the UK and Europe remained nil due to lockdowns. 

Brazilian HMS 1&2 (80:20) was offered at $245-250/mt cfr Nhava Sheva. Australia-origin HMS 1&2 (80:20) traded at $255-260/mt cfr Nhava Sheva and Mundra, up by $5/mt from the prior week.

 

The Davis Index for UAE-origin containerised HMS 1&2 (80:20) rose by $3/mt to $258/mt cfr Nhava Sheva. The Davis Index for HMS 1&2 (80:20) from the UK and Europe settled at $243/mt cfr Nhava Sheva, up by $3/mt from last Friday. The Davis Index for US-origin HMS 1&2 (80:20) settled at $250/mt cfr Nhava Sheva, up by $6/mt from the prior week.  

 

($1=Rs76.37)

 

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