Mills in India resumed trades for imported ferrous scrap but for immediate melt requirements. Most buyers focused on domestic purchases driving local scrap prices. Steel prices were largely steady as demand strengthens and manufacturing activities gained momentum.
Inventories of ferrous scrap with most mills are depleting fast and domestic scrap supply is tight. If the third wave of COVID-19 is controlled well, trades are expected to resume actively. Sellers are confident that global ferrous scrap prices have very limited room for downward movement from the current levels and could rebound as soon as Turkish mills return to restock scrap.
The daily Davis Index for containerized shredded, Friday, rebounded by $5/mt to $530/mt cfr Nhava Sheva. Deal for 1,000mt of containerized shredded by an alloy maker heard at $535/mt cfr Vizag inclusive of other payment terms, which translate to below $530/mt cfr Nhava Sheva. Offers to India rose towards the end of the week amid an increase in restocking demand from Pakistani buyers.
The daily/ Davis Index for UAE-origin HMS 1&2 (80:20) inched up $2/mt to $475/mt cfr Nhava Sheva. Indian mills continued to bid low despite a recovery in demand. The index was unchanged from last week. UAE-origin #1 HMS continues to trade at $480-485/mt cfr Nhava Sheva.
The index for containerized P&S was at $532/mt cfr Nhava Sheva, while the index for #1 busheling was unchanged at $550/mt from Aug 6. Inquiries for prime grades remain halted as mills found it unattractive.
Weak billet export demand from the ASEAN countries amid ongoing restrictions in the Philippines, Indonesia, Thailand and other markets weighed down Asian billet prices. China continued billet imports at $700-705/mt cfr China while Indian primary mills are eyeing bids of above $625-630/mt fob to maintain margins.
Prices for domestic HMS 1&2 (80:20) were at Rs35,500/mt ($478/mt) delivered Mumbai. Mills resumed imported HMS 1&2 (80:20) trades yet bids are falling short by $10-15/mt, said sellers. Narrowing of the gap between the landed price of imports and domestic scrap pushed up inquiries for imported HMS.
Trading in Alang’s shipbreaking market remained shut due to the extension of transporters’ strike. In Mumbai, the asking prices for rebar on Friday were at Rs50,000/mt ex-works, unchanged both on a daily and weekly basis. In Mandi Gobindgarh, ingots traded at Rs45,500/mt ex-works amid a gradual recovery in rebar demand.
In China, the market was driven by the bears through this week amid stricter production curbs and increasing concerns about the spread of new variants of COVID-19. Port operations have been affected due to enhanced quarantine controls at various sites and transportation facilities.
The daily domestic billet price in China on Friday dropped by CNY20/mt to CNY5,090/mt ($785/mt) ex-Tangshan inclusive of VAT. Billet prices in China were higher by just CNY10/mt from last Friday.
International daily iron ore Fe 62pc price index dropped by $4.75/dmt to $161.45/dmt cfr North China on Thursday. From the prior week, prices have dropped by almost $10/mt.
The daily Davis Index for containerized shredded on Friday, settled at $533.38/mt cfr Indian subcontinent, up by $5.23/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $487.25/mt cfr Indian subcontinent, down by $0.30/mt.