Indian importers stayed largely away from shredded, P&S, and busheling purchases as offers were firm on tight supply. Most opted for HMS from UAE for their immediate requirements amid a sharp drop in prices this week. Domestic steel prices and sales were weak. Raw material supply, including iron ore, sponge iron, and domestic scrap remained tight.
The daily Davis Index for containerized shredded, Friday, rose by $2.5/mt to settle at $527.5/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 dropped by $3.43/mt. Only a few sellers were in the market for containerized shredded as most yards opted to fulfill bulk demand amid low collection rates.
On weak domestic fundamentals, few buyers targeted prices below $520/mt cfr Nhava Sheva for shredded, with sellers unwilling to negotiate at those levels. The Indian currency remained depreciated above Rs74 against $1 for the last two weeks from Rs72 levels.
The daily Davis Index for US-origin HMS 1&2 (80:20) on Friday was at $493.75/mt cfr Nhava Sheva, down $1.25/mt. From a week ago, the index declined by $8.75/mt cfr. Deals, however, were limited for the US and UK-origin HMS in India as some buyers feel prices could soften further.
In Chennai, weak steel demand kept the market silent. A gap of $25-30/mt between offers and bids also impacted trading this week. For #1 HMS from the UAE, offers were $490-495/mt cfr on Friday.
The daily index for UAE-origin HMS 1&2 (80:20) rose by $2/mt to $473/mt cfr Nhava Sheva. From June 18, the index dropped by $16/mt. Secondary furnaces actively searched for lower-priced HMS and kept their bids at $450-455/mt cfr Nhava Sheva.
The Davis indexes for P&S and #1 busheling were at $537/mt and $560/mt cfr Nhava Sheva, respectively, down by $7/mt and $5/mt from June 18. Turning scrap and West African HMS traded in thin volumes at $465-470/mt cfr Nhava Sheva.
In Alang, melting scrap prices on Friday declined by Rs700/mt to Rs35,800/mt ex-yards. In Mumbai, rebar prices remained unchanged from a day ago on subdued demand at Rs45,800/mt ex-works. In Mandi Gobindgarh, the index for ingot was at Rs43,700/mt ex-works on Friday, down Rs300/mt from a day ago.
In China, domestic billet prices rose by CNY20/mt in a day to $4,840/mt ex Tangshan on Friday inclusive of VAT, but down by CNY120/mt from June 18. Steel futures rose despite price control measures from the government. Iron ore prices for ferrous content 62pc dropped below $215/mt cfr North China. Asian billet and HRC export prices continued to fall. Offers were below $610-615/mt fob India for billet exports.
The daily Davis Index for containerized shredded, Friday, settled at $532.18/mt cfr Indian subcontinent, up by $2.92/mt; while that for containerized US-origin HMS 1&2 (80:20) settled at $498.25/mt cfr Indian subcontinent, down by $1.75/mt.