Indian ferrous scrap importers slowly increased inquiries for imported scrap amid higher global prices. There are concerns whether the price momentum will sustain. Domestic steel producers have increased steel prices by $50-60/mt since early December. Demand for finished steel, though, remains slower-than-expected. 

 

The Davis Index for UAE-origin HMS 1&2 (80:20), Thursday, settled at $383/mt cfr Nhava Sheva, up by $6/mt from Wednesday and up by $26/mt from Dec 1. Bids for mixed HMS heard at $375/mt cfr Nhava Sheva. Trades for containerized #1 HMS without cast and galvanized iron from Dubai priced above $385-390/mt cfr Nhava Sheva. 

 

The Davis Index for US-origin HMS 1&2 (80:20) settled at $382.08/mt cfr Nhava Sheva on Thursday, up by $7.08/mt from Wednesday. Fresh offers for containerized scrap for January-end shipments heard at $385-390/mt cfr Nhava Sheva, with buying interest still lagging at $375/mt cfr Nhava Sheva.

  

HMS 1&2 (80:20) in containers traded from the UK at $385/mt cfr Mundra, from Australia at $390/mt cfr Nhava Sheva while from West Africa at $355-360/mt cfr Mundra.  

 

Mills opted for domestic ferrous scrap over imported as it remains economically unviable for many secondary mills. Domestic scrap is easily available in enough volumes. Also, sponge iron is still preferred for quicker availability. With the resumption of iron ore mining in Odisha, the persisting supply crunch for ore and sponge iron is expected to ease soon. International iron ore prices (Australian Fe 62pc) hit a record high of $151/mt cfr China on Wednesday.

  

Major shipping lines have decided to lower the number of free days at some destinations, particularly in Asia, effective Jan 1, 2021, to deal with the shortage of containers. This is expected to increase freight cost for Indian importers as customs clearance delays maybe lead to additional tariffs.  

 

The Davis Index for containerized shredded on Thursday settled at $403.33/mt cfr Nhava Sheva, up by $5.33/mt from Wednesday. Offers rose to $405/mt cfr Nhava Sheva with only a handful of suppliers in the market, while offers to Chennai heard at $410/mt cfr with no buyers. Supply remains tight amid container shortage and vessel delays.

 

In Turkey, the daily index for bulk HMS 1&2 (80:20) reached $383.87/mt cfr Turkey, hitting almost a six-year high. Following which offers in South Asia surpassed their prior peak in 2018.

 

Most bulk suppliers from the US and Australia were away from the market. Bulk shredded offered above $420/mt cfr Chattogram from the US West Coast on Thursday. Following tight supply and rising demand, Australian yards hiked offers this week.

 

Subcontinent

The Davis Index for containerized shredded, Thursday, settled at $402.37/mt cfr India subcontinent, up by $4.22/mt from Wednesday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $381.58/mt cfr India subcontinent, up by $7.00/mt from Wednesday.

 

($1=Rs73.67)

Leave a Reply

Your email address will not be published.