Imported ferrous scrap offers in India remained firm. But mills either lowered bids or stayed away from bookings hoping for a price drop in the coming days. Steel demand is bearish on the arrival of monsoon and softening global cues. Although some traders lowered their offers, for most, procuring scrap is still a challenge on tight availability in seller countries and container shortages.
The daily Davis Index for containerized shredded, Friday, rose by $0.3/mt to settle at $530.93/mt cfr Nhava Sheva. Offers were firm above $530-535/mt cfr Nhava Sheva, with buyers unwilling to accept these levels. From the prior Friday, the index rose by $6.57/mt to reach the highest levels seen in 2008. A few trades for shredded were at $530/mt cfr Nhava Sheva. There were very few fresh offers for containerized shredded as most yards opted to fulfill bulk demand amid low collection rates. The Indian currency was at Rs74 against $1 from below Rs73 a week ago.
The daily Davis Index for US-origin HMS 1&2 (80:20) remained flat on Friday at $502.5/mt cfr Nhava Sheva. From a week ago, the index rose by $10.25/mt cfr. Deals, however, were limited for the US and UK-origin HMS in India buyers feel prices have already reached a peak and could soften to match buyers’ expectations.
In Chennai, #1 HMS from the UAE was sold at $505-510/mt cfr before bids fall again to $500/mt cfr on Friday. The daily index for UAE-origin HMS 1&2 (80:20) dropped by $1/mt to $489/mt cfr Nhava Sheva. Prices were also down by $1/mt from the prior Friday. Mills want prices to drop by $5-10/mt to $480-485/mt cfr Nhava Sheva before they book more HMS volumes.
The Davis indexes for P&S and #1 busheling were at $544/mt and $565/mt cfr Nhava Sheva, respectively, both up by $7/mt from June 11. However, mills remained largely away from these grades in search of lower-priced scrap. Turning scrap and West African HMS traded in thin volumes at $470-475/mt cfr Nhava Sheva.
In Alang, melting scrap prices remained largely unchanged from a day ago at Rs36,800/mt ex-yards. In Mumbai, rebar prices declined by Rs300/mt on Friday on subdued demand. Rebar trades were very limited at Rs47,100/mt ex-works. In Mandi Govindgarh, ingot prices found ground after falling by Rs1,500/mt since Wednesday.
In China, domestic billet prices rose by CNY20/mt in a day to $4,960/mt ex Tangshan on Friday inclusive of VAT. Steel futures dropped, reversing Thursday’s gain by CNY150/mt on price control measures from the government. Iron ore prices for ferrous content 62pc remained below $220.2/mt cfr North China on Friday. Asian billet and HRC export prices declined by $10-15/mt.
The daily Davis Index for containerized shredded, Friday, settled at $528.55/mt cfr Indian subcontinent, up by $4.42/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $501.27/mt cfr Indian subcontinent, up by $4.41/mt.