Imported ferrous scrap offers in India climbed further on Thursday as domestic steel maintained an uptrend. Suppliers found it difficult to offer materials at earlier prices amid lowered availability.
The daily Davis Index for containerized shredded, Thursday, settled at $407.5/mt cfr Nhava Sheva, up $8.75/mt. Steel alloy producers with low inventories were willing to pay $405-410/mt cfr Nhava Sheva, but suppliers targeted prices above $415/mt cfr Nhava Sheva.
Shipbreaking scrap also rose by Rs500/mt, surpassing Rs28,000/mt ($384/mt) ex-Alang and registering a jump of over Rs2,000-2,500/mt since Monday.
Dubai-origin HMS #1 and P&S on Thursday was offered in the range of $365-375/mt cfr Nhava Sheva. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Thursday, settled at $359/cfr Nhava Sheva, up by $9/mt. Mills might resume trades for imported HMS scrap soon amid limited availability of the domestic scrap and the resulting rise in prices.
The daily Davis Index for US-origin HMS 1&2 (80:20), Thursday, surged by $10/mt to $370/mt cfr Nhava Sheva. Offers for #1 HMS were only above $400/mt cfr Nhava Sheva. Indian mills who were earlier claiming HMS 1&2 (80:20) to be workable only at $340-350/mt cfr Nhava Sheva are now accepting $360-370/mt cfr Nhava Sheva. They are worried of prices rising further as demand recovers.
China could resume purchases of ferrous scrap after their New Year holidays in late-February, which could support prices. A Chinese blast furnace-maker has bought 3,000mt of P&S from South Korea at $465/mt cfr China, up $15-20/mt than last week. Chinese mills were keen for UK shredded in bulk and containers, giving a further boost to UK prices.
Chinese market has showed signs of resuming billet imports after their New Year holidays. The market closed on February 11 and is expected to resume only after February 20. Prices for Q235 150mm square billets were at CNY3,850/mt ex-works Tangshan, including 13pc VAT. Before closing, spot imported prices for Fe 62pc content increased, nearing $165/mt cfr China.
Following rise in domestic billet prices, blast furnace mills targeted export offers for billet above $525-530/mt fob India, up $10-15/mt from the prior deals. This has offered strength to SE Asian billet prices with Philippines-based mills expected to be back in the market soon, said a trader.
The daily Davis Index for containerized shredded, Thursday, settled at $402.81/mt cfr India subcontinent, up by $10.31/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $368.63/mt cfr India subcontinent, up by $9.31/mt.