Imported ferrous scrap prices in India may have bottomed-out following global cues, according to traders, who might buy imported scrap soon amid limited inventories. Prices are expected to rise in the coming days. Offers jumped by $5-10/mt for the UAE origin HMS which was preferred by many mills in India.
The daily Davis Index for containerized shredded, Wednesday, settled at $398.75/mt cfr Nhava Sheva, up $2.5/mt from Tuesday. Steel alloy producers with low inventories could accept new levels above $400/mt cfr Nhava Sheva.
On Wednesday, domestic steel continued its uptrend as billet and rebar prices in Mandi and Gujarat strengthened by Rs300-500/mt. Shipbreaking scrap rose by over Rs1000-1500/mt since Monday, resulting in high offers.
Dubai-origin HMS #1 and PNS on Wednesday was offered in the range of $360-370/mt cfr Nhava Sheva. The daily Davis Index for UAE-origin HMS 1&2 (80:20), Wednesday, settled at $350/cfr Nhava Sheva, up by $5/mt. Mills would soon resume trades for imported HMS scrap amid limited availability of the domestic scrap.
The weekly Davis Index for cast iron, rotors, and drums on Wednesday, rose by $5/mt to $391/mt cfr Nhava Sheva. Offers for Cast rotors were only above $405-410/mt cfr Nhava Sheva amid container shortage and strong domestic demand. Sellers believe prices to rise further amid demand recovery.
The daily Davis Index for US-origin HMS 1&2 (80:20), Wednesday, turned up by $2.5/mt to $360/mt cfr Nhava Sheva. Yet, offers for #1 HMS were above $400/mt cfr Nhava Sheva. For Indian mills, HMS 1&2 (80:20) is workable only at $340-345/mt cfr Nhava Sheva, said a mill owner in Gujarat and thus, everyone is buying only UAE-origin scrap.
In China, a few deals were reported for Q235 150mm square billets, up by CNY100/mt to CNY3,950/mt ex-works Tangshan, including 13pc VAT. Indian mills target export offers for billet in the recent tender at $510-520/mt fob India. This has offered strength to SE Asian billet prices with Philippines based mills expected to be back in the market soon, said a trader.
Spot imported iron ore prices continued to strengthen amid rising futures and indicate healthy demand post-Chinese New Year holidays. Spot imported prices for Fe 62pc content rose by over $2/mt nearing $165/mt cfr China.
The daily Davis Index for containerized shredded, Wednesday, settled at $392.5/mt cfr India subcontinent, up by $2.95/mt. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $359.31/mt cfr India subcontinent, up by $1.61/mt. Containerized freight rates increased by $10-15/mt from the prior week.