Imported scrap prices in India were mixed this week. Domestic steel prices declined on Friday, and billet export bids were unattractive. Mills preferred competitively priced domestic scrap.
The Davis Index for containerized shredded, Friday, settled at $422.5/mt cfr Nhava Sheva, up by $1.25/mt from Wednesday. Prices dropped by $6.25/mt from the prior Friday. Secondary steelmakers were unwilling to bid above $410-415/mt cfr Nhava Sheva for shredded.
Offers for UAE-origin HMS rose despite a fall in domestic scrap prices in India. Mills are running with limited ferrous scrap inventories and are likely to book more in the coming days. In the overseas market, HMS from Dubai was a preferred option for most buyers on shorter delivery times and competitive prices amid a volatile market.
Dubai-origin HMS #1 was offered at $380-390/mt cfr Nhava Sheva on Friday. The Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled at $355/cfr Nhava Sheva, flat from January 22. Trades were in the range of $355-360/mt cfr Nhava Sheva.
Imported HMS that is priced at $350/mt cfr Nhava Sheva, equivalent to a minimum of Rs28,500/mt on the landed basis. This still remains higher than the domestic equivalent priced at Rs26,000-26,200/mt and Sponge iron priced around Rs24,500/mt delivered to Mumbai consumer.
The daily Davis Index for US-origin HMS 1&2 (80:20), Friday, was at $370/mt cfr Nhava Sheva, up by $3.25/mt. Offers for #1 HMS were at $390-400/mt cfr Nhava Sheva.
Trades for grades like busheling and P&S are still slow. Trades for turning scrap were at $335-345/mt cfr Mundra while HMS 1&2 (80:20) from Australia and the UK/EU was offered in the range of $370-380/mt cfr Nhava Sheva, depending on quality.
West and East African HMS with CI-GI traded at $340-350/mt cfr Nhava Sheva.
Indian mills concluded billet export deals at $540-550/mt fob India, $20-25/mt lower from last week amid a decline in the domestic prices. A $20-25/mt drop in Iranian billet prices to $535-540/mt fob Iran has impacted sentiment in SE Asia too. Southeast Asian mills offered billets at $580-590/mt cfr SE Asia.
In China, rising steel inventories and lull ahead of the New Year holidays continued to put downward pressure on the steel futures. A few mills are still keen to secure raw materials eyeing a strong comeback post-holidays. On Friday, Q235 150mm square billets prices in China remained unchanged at CNY3,860/mt ex-works Tangshan, including 13pc VAT.
The daily Davis Index for containerized shredded, Friday, settled at $415.45/mt cfr India subcontinent, up by $2/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $373.76/mt cfr India subcontinent, up by $2.17/mt. Traders have started resisting low bids. Next week demand is likely to pick up and strengthen prices. Improved container availability kept freight rates unchanged this week.