Mills in India resumed trades for imported containerized HMS lifting prices on Thursday. Despite stability in the international ferrous scrap prices, offers to India rose as domestic fundamentals continued to strengthen. With the COVID-19 situation appearing to be a bit under control, hopes of active trades emerged in the market.
On Thursday, sentiments were also boosted by a rebound in Chinese iron ore. Steel prices in the export markets, however, disappoint mills with HRC prices falling below $900/mt cfr Southeast Asia amid subdued buying interest for billet. Bids heard at $660-670/mt cfr China.
The daily Davis Index for UAE-origin containerized HMS 1&2 (80:20) rose by $5/mt at $475/mt cfr Nhava Sheva on Thursday. For UAE-origin #1 HMS offers jump above $490-500/mt cfr Nhava Sheva on Thursday. Mills sought to lower prices, however, sellers pushed offers up citing an increase in freight charges.
The daily Davis Index for US-origin containerized HMS 1&2 (80:20) rose by $3.75/mt at $482.5/mt cfr Nhava Sheva on Thursday. Most sellers refused to match the lower expectations of mills in South Asia.
The daily Davis Index for containerized shredded, Thursday, recovered by $3.75/mt to $526.25/mt cfr Nhava Sheva. Indian mills remained reluctant to buy imported high grades and focused mainly on HMS trades. Interest for shredded remained scarce even from regular alloy makers. However, amid low inventories buyers could return to the market soon. Traders are more optimistic about dealing at higher prices with Indian mills than in Pakistani and Bangladeshi buyers.
Domestic melting scrap prices in Alang gained further by Rs400/mt to Rs36,200/mt ex-Alang. In Mumbai, the asking prices for rebar were unchanged at Rs49,500/mt ex-works. Pig iron offers in north India for steel grade were at Rs41,300-41,500/mt delivered while those for foundry grade at Rs43,500-43,700/mt delivered Ludhiana on Thursday.
On Thursday, international iron ore prices recovered above $150/dmt cfr China for Fe 62pc spot sales. Resumption in regularisation of port operations at the Chinese ports which were hit due to COVID resurgence could boost prices.
Iron ore futures on the Dalian commodity exchange strengthened, while steel futures dropping by CNY100-200/mt. Steel prices in China dropped by CNY40-60/mt on Thursday amid a lack of clarity on price direction.
Domestic billet price in China on Aug 26 remained flat at CNY4,950/mt ex-Tangshan inclusive of VAT.
The daily Davis Index for containerized shredded on Tuesday, settled at $527.13/mt cfr Indian subcontinent, up by $0.91/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $488.75/mt cfr Indian subcontinent, up by $3.5/mt.