Indian importers were upbeat amid strengthening domestic and international steel prices. Inquiries picked up amid a positive outlook. Supply from the UAE, the largest ferrous scrap supplier for India, usually dips during the Ramdan months. But steelmakers could look for material from other origins if steel prices remain healthy. Indian mills could look to fill in the void left by China in export markets amid production curbs in Tangshan.
Pakistani buyers booked shredded at $455-460/mt cfr, at prices up by $10/mt from a day ago. Thus, sellers raised their asking prices for Indian buyers. Offers for shredded were in the range of $455-460/mt cfr Nhava Sheva, hitting a one-month high. But mills in India were unwilling to accept these levels since most have enough inventories in hand. The Davis Index for containerized shredded was up by $8.75/mt to $450/mt cfr Nhava Sheva from a day ago. From a week ago, the index jumped by $21.25/mt cfr.
The daily Davis Index for UAE-origin HMS 1&2 (80:20), Friday, settled at $420/cfr Nhava Sheva, up by $7/mt. From last Friday, the index rose by $25/mt. Dubai-origin HMS #1 traded at $430/mt cfr Nhava Sheva, up by $15-20/mt from prior Friday. There is increasing competition to secure material from the region from the subcontinental markets ahead of Ramadan resulting in a temporary shortage.
The daily index for US-origin HMS 1&2 (80:20) settled at $420/mt cfr Nhava Sheva, up by $3.75/mt. Offers for HMS 1&2 (80:20) from the UK and Australia were at $415-425/mt cfr Nhava Sheva.
Bids for turning scrap were in the range of $385-390/mt cfr Nhava Sheva, up by $10/mt from a week ago. A few deals for West African HMS for 20-21mt loading with CI-GI were at $385/mt cfr Goa.
Mills stayed away from booking containerized P&S and #1 busheling. From a week ago, the indexes for P&S and #1 busheling were at $462/mt and $480/mt cfr Nhava Sheva, up by $20/mt.
On Friday, melting scrap offers in Alang rose by Rs700/mt to around Rs32,500/mt ex-yard as trades resumed with the beginning of the new financial year. In Mandi Gobindgarh, ingot prices were at Rs42,600-42,700/mt ex-works. In Mumbai, rebar prices rose by Rs300/mt from a day ago to Rs48,100/mt ex-works. Ferrous scrap demand is thus expected to stay strong, believe importers.
With the inoculation drive gaining pace, most believe the resurgence of COVID-19 could be controlled in the next couple of weeks. Steel demand would remain healthy for two months ahead of monsoon season encouraging importers to secure more scrap. Effective April, flat steel prices have increased by Rs2,500-3,000/mt while long steel prices increased by Rs1,500-2,000/mt.
The Chinese government has reiterated its plan to ensure that crude steel output drops in 2021. There is an ongoing nationwide investigation to track the supply-side reforms from 2016. Spot imported iron ore 62pc ferrous content prices were above $167.5/mt cfr North China on Friday with a possibility of further rise in the coming days.
Domestic billet prices in the retail market reached a new record high at CNY5,000/mt ex Tangshan, up by CNY150/mt. Chinese imports are expected to pick up, but exports could remain hit as mills await clarity on tax rebates.
On Friday, firm offers pushed the daily Davis Index for containerized shredded Friday to $447.11/mt cfr Indian subcontinent, up by $8.66/mt. The index jumped by $24.89/mt from last Friday. The daily index for containerized US-origin HMS 1&2 (80:20) settled at $419.45/mt cfr Indian subcontinent, up by $5.78/mt from a day ago.