Imported ferrous scrap price in South Asia fell pressured by increased supplies. Many scrap suppliers returned to the market after a short hiatus as collection rates improved with the easing of the pandemic restrictions, globally. Domestic steel demand softened in India delaying scrap purchase, while buyers in Bangladesh returned to market amid gradual improvement in demand. In Turkey, US-origin HMS 1&2 (80:20) bulk prices remained flat at $283.5/mt cfr Turkey in the absence of trades.
Bangladeshi steel mills are ramping production after rains and floods subsided this week. Mills raised inquiries for imported scrap to secure raw material inventories.
The Davis Index for containerized shredded settled at $319.64/mt cfr Chattogram, down by $3.93/mt from Tuesday. Despite offers for shredded at $325-330/mt cfr Chattogram from the UK-based yards, most buyers held their bids at $315-318/mt cfr Chattogram levels. Mills in Dhaka are expected to raise their bids this week.
Supplies from Australia and New Zealand have started to thin late last week and on Monday, offers were close to nil. In the absence of these offers, mills are likely to raise inquiries for South American containerized scrap. The index for Latin America-origin HMS 1&2 (80:20) settled at $301.07/mt cfr Chattogram, down by $3.93/mt from Tuesday. A few containers traded at the index price. Offers for #1 HMS from Brazil, Chile, and Europe were at $300-305/mt cfr Chattogram, with bids at $295/mt cfr Chattogram from small-scale steelmakers.
The index for US-origin HMS 1&2 (80:20) settled at $306.25/mt cfr Chattogram, down by $1.25/mt from Tuesday. Sellers offered HMS 1&2 (80:20) at $310/mt cfr Chattogram level. However, no trades were confirmed above $310/mt cfr Chattogram. Most suppliers believe prices are unlikely to fall sharply as Japanese ferrous scrap export prices jumped up sharply on Wednesday in line with higher bids placed in Kanto scrap tender.
Bangladesh’s domestic scrap prices rose supported by global cues and a recovery in domestic steel demand. Shipbreaking scrap traded at BDT30,000-31,000/mt delivered Chattogram mills. Scrapped vessel imports prices rose by $10-15/ldt on Monday.
Pakistani ferrous scrap importers booked limited volumes just enough to suffice their immediate requirements. A few mills are delaying purchases in order to benefit from an anticipated correction in scrap prices, next week. The pandemic has severely impacted the cash flows of mills and importers in Pakistan, which has in-turn reduced trading volumes of scrap.
The daily Davis Index for containerized shredded Wednesday settled at $310.78/mt cfr Port Qasim, down by $4.08/mt from Tuesday. Trades for the US and Europe-origin shredded were at $308-310/mt cfr Port Qasim. UK-based suppliers offered the grade at $312-315//mt cfr Port Qasim on Wednesday.
In the domestic market, prices softened amid concerns of a correction in global scrap prices. Bala billet traded at PKR92,000-92,500/mt ex-works Punjab, down by PKR500, while shredded scrap Q toke traded flat at PKR73,000-73,500/mt ex-works.
The Davis Index for HMS 1&2 (80:20) UAE-origin Wednesday settled at $300/mt cfr Port Qasim, down by $5/mt from Tuesday. Offers for UAE-origin mixed #1 HMS and P&S were at $305-307/mt cfr Port Qasim on Wednesday.
The index for US-origin HMS 1&2 (80:20) settled at $296.25/mt cfr Port Qasim, down by $3.39/mt from Tuesday. Most yards in the US offered material at $298-300/mt cfr Port Qasim. A few trades were heard at $295-297/mt cfr Port Qasim.
($1= PKR168.45 BDT84.77)