Imported ferrous scrap prices in India hit an 8-month high as steel mills ramp up production. Some steelmakers are sceptical and say this rise is unsustainable as domestic steel demand is still slow. The resumption of public transport services such as railways and metros could ease travel in India and help workers return to factories and industrial areas. Secondary and mid-sized steel mills are also expected to ramp up production in the coming week. Recovery in production could result in a shortage of imported scrap in the domestic market, said traders.

 

SE Asian and China-based billet importers have raised bids and paid upto $445-450/mt cfr Philippines for Indian billets. The resumption of trades by Chinese importers have lifted the spirits of Indian billet exporters. 

 

Few mills shed Monday blues to book imported scrap at high price to meet their immediate needs and preferred HMS from short delivery destinations like UAE and Australia. For the grades like Turning scrap, Germany and Belgium-based suppliers could materialise deals. Most steelmakers were, however, cautious and continued to book for immediate requirements as COVID-19 infections in the country continue to rise rapidly. 

 

In Turkey, the daily US-origin HMS 1&2 (80:20) settled at $299.8/mt cfr Turkey on Friday while trades on Thursday heard at $299-300/mt cfr Turkey for US-origin HMS 1&2 (80:20). Expectations were bullish for steady demand from billet and rebar markets. 

 

The daily Davis Index for containerized shredded on Monday was at $324/mt cfr Nhava Sheva, up $3/mt from Friday. UK-origin containerized shredded were offered at $325-330/mt cfr Nhava Sheva and Mundra on Friday. The prior confirmed shredded trades concluded at $319-320/mt cfr Nhava Sheva for European cargoes, while the UK-origin scrap was offered above $325/mt cfr Nhava Sheva. 

 

Indian mills stayed away from bulk cargoes trades. After the latest rise in Turkey prices, offers for Kandla are at $320-325/mt cfr Kandla for US-origin HMS 1&2 (80:20) but buyers held bids below $315-320/mt cfr Kandla.

 

The daily Davis Index for UAE-origin HMS 1&2 (80:20) settled at $305.13/mt cfr Nhava Sheva Monday, up by $0.58/mt from Friday. Deals for Dubai-origin HMS 1&2 (80:20) were at $305/mt cfr Nhava Sheva, stable from Friday. Suppliers refused to accept lower bids of $300/mt cfr Nhava Sheva. #1 HMS scrap from Dubai yard traded at $308-310/mt cfr Nhava Sheva. There is less clarity around when the ferrous scrap ban imposed by UAE will end. 

 

The index for US-origin HMS 1&2 (80:20) Monday settled at $306/mt cfr Nhava Sheva, up by $1/mt from Friday. Bids from a few buyers reported at $300-305/mt, however, lack of offers resulted in no trades being materialized in this range. 

 

Subcontinent

The Davis Index for containerized shredded, Monday, settled at $314.5/mt cfr India subcontinent, up by $2.2/mt from Friday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $298.7/mt cfr India subcontinental, up from $1/mt cfr India subcontinent from Friday.

 

($1=Rs73.49)

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