Imported ferrous scrap prices in India dropped by $15-20/mt as buyers shied away from trades. COVID-19 related lockdown has disrupted economic activities and logistics in the country. Domestic semi and finished steel prices declined by over Rs1,000-1,500/mt ($13-20/mt) in absence of demand in the market. The Indian currency breached Rs75 against US$1 mark on Thursday, from Rs73.96 on March 13, impacting seaborne trades.
The weekly Davis Index for containerised shredded dropped by $21/mt to $280/mt cfr Nhava Sheva on Friday. Early this week, shredded traded at $285/mt cfr Nhava Sheva. Prices subsequently dropped to $278-280/mt cfr Nhava Sheva late in the week. The Maharashtra state government on Friday, announced a complete lockdown to contain the spread of COVID-19, impacting loading operations at mills.
The Davis Index for containerised P&S 5ft settled at $285/mt cfr Nhava Sheva, down by $18/mt from the prior week. The weekly Davis Index for busheling settled at $290/mt cfr Nhava Sheva, down by $18/mt from the prior week.
The weekly Davis Index settled at $245/mt cfr Nhava Sheva, down by $21/mt. Thin trades for turning concluded at $240-245/mt cfr Chennai.
A drop of over $15/mt in Turkish imported ferrous scrap prices tagged global prices to fall further. A few mills booked imported scrap for April shipments citing a shortage of domestic scrap. Supply from the US and Europe is also likely to dry out due to travel restrictions imposed across the world.
The Davis Index for UAE-origin containerised HMS 1&2 (80:20) dropped by $13/mt to $280/mt cfr Nhava Sheva on Friday. Loading for an older contract of Dubai-origin #1 HMS was at $285-290/mt cfr Nhava Sheva. But no new bookings were reported. HMS 1&2 (80:20) from South Africa was offered at $280-285/mt cfr Nhava Sheva. No trades were reported at those level as buyers fear permit issues faced by South African sellers would affect transactions.
The Davis Index for HMS 1&2 (80:20) from the UK and Europe settled at $260/mt cfr Nhava Sheva, down by $12/mt from last Friday.
Demand from mills for West African HMS 1&2 (80:20) dropped this week, as domestic sponge iron was available at lower prices. Sponge iron traded at Rs16,000-16,500/mt ex Bellary or Rs18,000-18,500/mt ($240-245/mt) del plant. Bids for HMS 1&2 (80:20) from West Africa were at $255-260/mt cfr Goa.
Trades were limited as buyers and sellers failed to find a common ground for a second successive week. The Davis Index for US-origin HMS 1&2 (80:20) settled at $258/mt cfr Chennai, down by $17/mt from the prior week. The Davis Index for the UK and EU-origin HMS 1&2 (80:20) settled at $262/mt cfr Chennai, down $13/mt from the prior week. The Davis Index for Australia-origin HMS 1&2 (80:20) settled at $265/mt cfr Chennai, down by $13/mt from the prior week.