Indian steel mills resumed inquiries for imported scrap with an intent to restock material before prices rise further. The availability of containers remains an issue since trades have been hampered amid uncertainty in the international market due to the US presidential elections and the impact of a second COVID-19 wave in Europe. During the winter months, most yards will limit working hours, which would result in a declined collection rate. Suppliers are, therefore, expected to raise prices for December shipments.
The Indian currency depreciated to Rs73.71 against $1 after strengthening for a brief while to touch Rs72.9 early this month. The depreciation dampens buying sentiment for some mills.
The Davis Index for containerized shredded on Tuesday settled at $319.25/mt cfr Nhava Sheva, up by $1.75/mt from Friday. Trades for shredded were at $318-322/mt cfr Nhava Sheva. Suppliers from Australia and the US increased offer volumes amid improved demand from Indian buyers. Shredded offers were at $322-325/mt cfr Nhava Sheva on Tuesday. Shredded has become a limitedly available commodity now, said a trader.
The Davis Index for HMS 1&2 (80:20) from UAE, Tuesday, settled at $307.64/mt cfr Nhava Sheva, up by $2.64/mt from Friday, with few trades reported at the index price. A North Indian steelmaker booked HMS 1&2 (80:20) at $307-310/mt cfr Nhava Sheva, prices which denote a one-month peak. Trades for containerized #1 HMS from Dubai were at prices above $310/mt cfr Nhava Sheva. Offers were over $310-312/mt cfr Nhava Sheva against bids of $305-310/mt cfr Nhava Sheva.
The daily Davis Index for US-origin HMS 1&2 (80:20) inched up by $2.64/mt to $307.64/mt cfr on Tuesday amid trades picking up. Following global cues, suppliers are offering cargoes of HMS 1&2 (80:20) at $315-320/mt cfr Kandla, but these prices remain unviable for buyers. In the coming days, however, mills could absorb a partial raise in offers should they fall short of material. In the export market, Indian mills offered billets at $450-455/mt cfr Southeast Asia, prices which were up by $5/mt from the prior week.
Improved trades and a shortage of containers has resulted in the subcontinent indexes increasing. The Davis Index for containerized shredded, Tuesday, settled at $317.62/mt cfr India subcontinent, up by $2.20/mt from Friday. The Davis Index for containerized US-origin HMS 1&2 (80:20) was at $304.96/mt cfr India subcontinent, up by $0.73/mt from Friday.