Indian imported ferrous scrap prices continued to strengthen as most mills are gradually raising productions this week. Strong demand is anticipated amid limited scrap inventories at mills. On the other hand, the availability of containerized scrap offers remained scarce in the global market. Most steelmakers were, however, cautious and stuck to booking for immediate requirements as COVID-19 infections in the country continue to rise rapidly. A few trades for HMS scrap from Dubai, the US and Australia were reported. 

 

Primary steelmakers are set to raise finished flat steel prices from Tuesday, while markets in Maharashtra and Gujarat are expected to return to active trading from Wednesday onwards with the end of the Ganesh festival. In most parts of India, despite a continued rise in COVID-19 cases, economic activities including steel production have returned to pre-COVID levels. 

 

In Turkey, the daily US-origin HMS 1&2 (80:20) settled at $290/mt cfr Turkey while offers remained at $290-295/mt cfr. Prices in bulk cargoes rose to a seven-month high following increased demand for rebar in Southeast Asian markets. Expectations of stable demand from billet and rebar markets pushed up offers from most suppliers to $295/mt cfr Turkey in bulk cargoes. 

 

The daily Davis Index for containerized shredded Tuesday rose to $318/mt cfr Nhava Sheva, up $4/mt from Monday. UK-origin containerized shredded were offered at $320-325/mt cfr Nhava Sheva and Mundra on Tuesday. The prior confirmed deals for the US origin shredded was at $314/mt cfr Mundra late last week. Only major steel mills remained active in the shredded scrap market while traders preferred HMS 1&2 (80:20) against shredded in line with recent consumption patterns. 

 

In the bulk market, Indian mills were slower with limited interest to book scrap. Offers for HMS 1&2(80:20) rose further in the range of $310-315/mt cfr Kandla, however, no trades were reported. Indian billet makers turned active for exports amid the volatile domestic market and were looking for billet export at $425-430/mt fob India, however, they are yet to get these levels from buyers in China and Southeast Asian markets. Iranian mills sold billet and slab at $400-405/mt fob Iran or equivalent to $435-440/mt cfr SE Asia.  

 

The Indian rupee gained against the US dollar to reach 73 levels against 74 in the prior weeks. This could help importers resume scrap import trades as demolition activities have also picked up in supplier countries. 

 

The daily Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $303.5/mt cfr Nhava Sheva Monday, up by $1.5/mt from Monday. Deals for Dubai-origin HMS 1&2 (80:20) were at $300-305/mt cfr Nhava Sheva, up $5/mt from the prior week. Suppliers refused to accept lower bids of $285-290/mt cfr Nhava Sheva. #1 HMS scrap from Dubai yard was offered at $310/mt cfr Nhava Sheva on Tuesday. 

The index for US-origin HMS 1&2 (80:20) Tuesday settled at $301/mt cfr Nhava Sheva, up by $1/mt from Tuesday. Bids remained low while trades were reported near the index price. 

 

Trades for HMS 1&2 (80:20) from Australia and Brazil were reported at $295-298/mt cfr Nhava Sheva and $305/mt cfr Chennai depending on quality. Turning was offered at HMS 1&2 (80:20) at $275-280/mt cfr Nhava Sheva on Tuesday. NP Busheling scrap was traded at $335/mt cfr Vizag 

 

Subcontinent

The Davis Index for containerized shredded, Monday, settled at $309/mt cfr India subcontinent, up by $3/mt from on Monday. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $294.2/mt cfr India subcontinental, up by $2/mt from $292.2/mt cfr India subcontinent on Monday.

 

($1=Rs72.95)

 

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