Imported ferrous scrap offers in India remained elevated on strong global cues. But the domestic market offered very little support for trading at these prices. Only a few mills bought HMS from overseas markets in limited tonnages to meet their minimal production requirements. 

 

The daily Davis Index for containerized shredded, Monday, settled at $458.13/mt cfr Nhava Sheva, up by $4.38/mt. Offers were in the range of $460-465/mt cfr Nhava Sheva. Most secondary steel mills shied away from trades as offers were unviable. 

 

On Tuesday, Dubai-origin HMS #1 and P&S were offered in the range of $420-430/mt cfr Nhava Sheva. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Tuesday, settled at $419/cfr Nhava Sheva, up by $4/mt. Mills were not willing to raise their bids above $410-415/mt cfr Nhava Sheva for Dubai-origin HMS 1&2 (80:20). 

 

The daily Davis Index for US-origin HMS 1&2 (80:20), Tuesday, rose by $3.57/mt to $417.50/mt cfr Nhava Sheva. Increased demand in Taiwan and Vietnam along with bullish domestic demand, pushed most US suppliers to raise their offers on a fas basis. For Indian buyers, offers were only above $420/mt cfr Nhava Sheva. Container freight rates on the New York -Nhava Sheva route rose by $2-3/mt from the prior week to reach over $30/mt. 

Trades for West and East African HMS for 20-21mt loading with CI-GI were reported at $390-395/mt cfr Nhava Sheva and $400-405/mt cfr Chennai, respectively. 

 

On Tuesday, shipbreaking scrap prices in Alang declined marginally after last week’s rally. Most buyers resisted these prices amid the possibility of iron ore and Sponge iron prices declining. A few mines in India have resumed operations which could ease the supply of iron ore and pressure prices. 

 

Ingot prices in Mandi Gobindgarh declined by Rs500-600/mt on Tuesday as demand slowed down. The fear of another wave of COVID-19 pandemic and related restrictions in major ferrous scrap consumer markets like Maharashtra, Gujarat, Chennai, and Punjab pulled sentiment down. Ingot traded at Rs39,100-39,300/mt ex-works Mandi Gobindgarh. 

 

Southeast Asian billet prices surge

Amid firm imported scrap prices, billet prices in Southeast Asian counties like Thailand, Vietnam, and China rose by $20-25/mt from the prior week. Billet trades were reported in the range of $580-585/mt cfr Southeast Asia. Indian mills also raised their export offers to $565-570/mt fob India. 

 

Rebar prices in the Turkish domestic market rose by TRY80-100/mt boosting sentiment for scrap purchases from overseas markets. On Tuesday, China announced stricter pollution control rules marginally hitting demand. Australian iron ore after reaching a 10-year high on $176/mt cfr China on Monday, paused its rally as futures remained mixed on Tuesday.

 

Subcontinent

The daily Davis Index for containerized shredded, Tuesday, settled at $459.91/mt cfr India subcontinent, up by $3.20/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $421.93/mt cfr India subcontinent, up by $2.98/mt. Freight charges across the world remained elevated keeping the landed cost of ferrous scrap firm in all Asian countries. Container shortage is likely to persist for the coming weeks.  

 

($1=Rs72.47)

 

Leave a Reply

Your email address will not be published.