Imported ferrous scrap prices in India rose following global cues on Wednesday. Demand improved, but deals were still few as domestic steel prices softened. Strengthening bulk demand in Turkey is likely to keep prices boosted in near term. On the other side, electricity supply cut to furnaces in the central region, and the call for transportation strike in North India could have some impact on imported scrap trades.
The daily Davis Index for containerized shredded, Wednesday, was at $516.25/mt cfr Nhava Sheva, up by $5/mt. Offers firmed up following resumption in trades by alloy makers. US-origin shredded in containers sold at $512/mt cfr Nhava Sheva. Offers were above $520-525/mt cfr Vizag on Wednesday. An increase in Pakistani inquiries for shredded scrap is likely to push prices up in India.
Driven by high offers on increased domestic realization in the US, the daily Davis Index for US-origin HMS 1&2 (80:20) settled at $490/mt cfr Nhava Sheva, up by $5/mt. Deals, however, were limited for the US and UK-origin HMS as most preferred to buy UAE-origin material. On Wednesday, melting scrap offers in Alang dropped by over Rs700/mt to Rs36,800/mt ex-yards, with many small and medium-scale steelmakers opting for domestic material.
The weekly Davis Index for cast iron, rotors, and drums, Wednesday, settled at $518/mt cfr Nhava Sheva, up by $12/mt. Tight supply in supplier countries gave prices a lift. Trading is expected to pick up in the coming days on limited domestic supply.
In Chennai, #1 HMS from the UAE traded at $500-505/mt cfr. The daily index for UAE-origin HMS 1&2 (80:20) rose by $4/mt to $481/mt cfr Nhava Sheva. Deals for #1 HMS were at prices above $490/mt cfr Nhava Sheva. With relaxations in COVID-19-related restrictions, economic activities in many states are expected to pick up in the coming days. The supply of oxygen for industrial use has started to ease, which could increase the pace for fabrication and gas cutting activities.
In China, steel futures rebounded on Wednesday, pushing prices marginally up in the spot market. Rebar in Shanghai rose by CNY8/mt from Tuesday to CNY5,162/mt ex-works. Domestic billet prices climbed up by CNY20/mt to CNY4,960/mt ex-Tangshan. Global iron ore price kept rising on Friday as ferrous 62pc reached above $212/mt cfr China levels on Wednesday, up by $4/mt from a day prior. Billet export offers are thus expected to move up in Asia.
The Davis Index for containerized shredded, Wednesday, settled at $520.07/mt cfr Indian subcontinent, down by $4.61/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $494.95/mt cfr Indian subcontinent, up by $4.95/mt. Revival in demand coupled with firm offers from suppliers pushed indexes up on Wednesday despite limited deals.