Imported ferrous scrap prices in India fell Tuesday as domestic finished steel demand remains subdued. Despite fewer bids from mills, suppliers anticipate a strong market in October and refuse to sell at lower prices. Inquiries for imported scrap remains high amid limited domestic scrap availability supporting suppliers’ claim of a limited downside.  

 

The daily Davis Index for containerized shredded settled at $314.79/mt cfr Nhava Sheva, down $2/mt from Monday. Bids for shredded were firm at $313-315/mt cfr Nhava Sheva with most suppliers resisting these levels. Indian buyers are unlikely to book material if prices do not decrease, while yards and traders believe a steep drop in prices is less likely. A few suppliers withdrew offers from the market.  

 

In the bulk market, offers for HMS 1&2 (80:20) remained in the range of $315-325/mt cfr Kandla with no buying interest reported at those levels.

 

Indian buyers refrained from trades on Tuesday as domestic billet prices, specifically in Gujarat, dropped sharply by Rs1,000-1,200/mt from Friday. Prices for domestic billet reported at Rs30,500-30,600/mt ex-works Mumbai, down Rs200/mt from a day earlier.  Another cause of concern was Chinese HRC suppliers resuming exports to Vietnam and Asian markets. This would pressure flat steel prices in the coming days.  

 

In the export market, SE Asian buyers were active paying $445/mt cfr Philippines for Indian billets, down $5/mt from the prior deal. Mills targeted $430/mt fob levels but failed to close deals.

 

The Davis Index for HMS 1&2 (80:20) of UAE-origin settled flat at $298/mt cfr Nhava Sheva, Tuesday. Deals for Dubai-origin HMS 1&2 (80:20) were at $295-300/mt cfr Nhava Sheva. Most mills held bids at $290-295/mt cfr Nhava Sheva on Tuesday. Scrap grade #1 HMS from Dubai traded at $303-305/mt cfr Nhava Sheva against prior offers of $310/mt cfr Nhava Sheva.  

 

The index for US-origin HMS 1&2 (80:20) settled at $297.7/mt cfr Nhava Sheva, down by $1.22/mt from Monday. Indian mills placed bids for UK and US origin HMS 1&2 (80:20) at $293-295/mt cfr Nhava Sheva on Tuesday.  

 

HMS 1&2 (80:20) from Europe, South America, and West Africa traded at $290‑295/mt cfr Nhava Sheva Tuesday. A few trades for HMS 1&2 (80:20) from Australia were reported at $295-300/mt cfr Nhava Sheva.

 

Small and medium-scale electric arc and induction furnaces are struggling to find a foothold in the competitive market. Amid pressure on their profits and strained cash flow, mills are waiting for prices to drop before restocking scrap.

 

Subcontinent

The Davis Index for containerized shredded, Tuesday, settled at $309.80/mt cfr India subcontinent, down by $1.68/mt from Monday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $292.8/mt cfr India subcontinental, down by $0.42/mt.  

($1=Rs73.44)

 

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