Indian mills continued booking ferrous scrap actively early in the week. In the absence of Chinese finished steel supply, steel makers hope to increase seaborne trades. Demand for imported ferrous scrap is likely to be bullish in the coming days. Prices for ferrous scrap rose by $5-15/mt this week, driven by a rise in global scrap prices and increased demand.
The weekly Davis Index for containerised shredded settled at $303/mt cfr Nhava Sheva, up by $14/mt. Early in the week, shredded traded at $298-304/mt cfr Nhava Sheva. By mid-week, offers rose to $305-310/mt cfr Nhava Sheva. Mills were reluctant to accept those levels and trading thinned late in the week.
The Davis Index for containerised P&S 5ft settled at $306/mt cfr Nhava Sheva, up by $3/mt from the prior week.
The Davis Index for Busheling settled at $313/mt cfr Nhava Sheva and trades were reported in the range $310-315/mt cfr Nhava Sheva.
Major shipping lines have hiked freight by around $250 for 20ft containers and by around $400 for 40ft containers effective Mar 1. Rates are likely to be increased further effective mid-March.
The Davis Index for Dubai-origin containerised HMS 1&2 (80:20) rose by $3/mt to $293/mt cfr Nhava Sheva on Friday. Early this week, Dubai origin #1 HMS traded at $285/mt cfr Nhava Sheva. A mix of P&S and HMS 1 of Dubai-origin sold at $305/mt cfr Nhava Sheva.
HMS 1&2 (80:20) of South African origin was offered at $295-298/mt cfr Nhava Sheva. Thin trades concluded in this range.
The Davis Index for Turnings settled at $275/mt cfr Nhava Sheva, up by $6/mt from the prior week. Traders refrained to sell Turnings scrap below $280/mt cfr amid limited offers in the market. The weekly index for Busheling settled at $313/mt cfr Nhava Sheva. On Friday suppliers were unwilling to offer Busheling below $315/mt cfr Nhava Sheva expecting the global market to remain bullish as Turkish mills were booking at higher prices. HMS 1&2 (80:20) from the UK and Europe traded at $280/mt cfr Nhava Sheva.
Goa
Mills in Goa preferred West African HMS 1&2 (80:20) which traded at $275-280/mt cfr Goa up $5/mt from the prior week. Goan steel makers blend HMS with sponge iron for cost efficacy.
Chennai
Demand for imported scrap in Chennai was subdued amid the availability of cheaper domestic scrap this week. The Davis Index for US-origin HMS 1&2 (80:20) settled at $278/mt cfr Chennai, up by $4/mt from the prior week. The Davis Index for UK/EU origin HMS 1&2 (80:20) settled at $280/mt cfr Chennai, up by $7/mt from the prior week. European scrap suppliers held offers higher at $280-285/mt from the bid levels of $270-275/mt citing increased freight charges amid a shortage of empty containers globally. Domestic HMS 1&2 (80:20) was priced at INR21,000-21,500/mt ex-yards which was cheaper over imported scrap.