Ferrous scrap import prices in South Asia were mixed on Monday. Buyers and sellers were unable to find a common ground and thus trades were subdued. Finished steel demand in South Asian markets was tepid as India continued to struggle with COVID-19 cases and labour shortage, while Bangladesh and Pakistan buyers refrained from trades ahead of financial year closing on June 30.
The Davis Index for containerised shredded settled at $271.70/mt cfr India subcontinent, up by $0.45/mt from $271.25/mt on Friday. A few suppliers attempted to raise offers by $5/mt citing limited supply of shredded in the market. But buyers stayed away from those levels.
The index for containerised US-origin HMS 1&2 (80:20) settled at $251.65/mt cfr India subcontinent, down by $1.00/mt from $252.65/mt from Friday.
Imported ferrous scrap prices continued their downtrend. In North India, demand was subdued as production activities remain limited with a closure announced in Mandi Gobidgarh.
The index for containerised shredded settled at $270/mt cfr Nhava Sheva, unchanged from Friday. Offers for the grade were at $270-275/mt cfr Nhava Sheva from the US, UK and Europe. Limited containerised trades were reported at the index price. Opinions on the price direction in coming days is divided.
Prices for Brazilian and West African HMS 1&2 (80:20) in containers remained unchanged at $240-245/mt cfr Nhava Sheva from last week. Domestic ferrous scrap prices in some markets have increased by Rs500-700/mt since Friday. Thus, trades for imported scrap are likely to rise in the coming days.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $255/mt cfr Nhava Sheva on Monday, up by $3/mt from Friday. A rise in domestic HMS scrap on tightened availability pushed offers up.
Dubai is expected to prioritise its domestic consumption over exports in the coming days and the government has already imposed four-month scrap export ban to support domestic industry.
The index for US-origin HMS 1&2 (80:20) was at $250/mt cfr Nhava Sheva, unchanged from Friday. A few offers were at $250-255/mt cfr Nhava Sheva with no buyers in the market.
Bangladeshi steelmakers are waiting for prices to fall further before booking more scrap as domestic ship breaking scrap was priced lower at BDT26,500-27,000/mt ex-yards Chattogram.
Ahead of the financial year closing, Bangladesh steel mills looked to clear their accounts and fixing their LC balance.
The Davis Index for containerised shredded settled at $278/mt cfr Chattogram, unchanged from Friday. Very limited bids from mills were at $280/mt cfr Chattogram for shredded from Australia and New Zealand. Offers from the UK and European yards for shredded in containers were at $290/mt cfr Chattogram.
Japanese export prices have been on a fall and a few buyers were interested in Japanese scrap cargoes. Bids were heard for #2 HMS at $260-265/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) inched up by $2/mt to $255/mt cfr Chattogram on Monday. Brazilian HMS 1&2 (80:20) suppliers lifted their offers citing rising domestic demand in their home country. Pig iron prices Brazil also increased last week.
The index for US-origin HMS 1&2 (80:20) settled at $262/mt cfr Chattogram, down by $1/mt from Friday.
Buyers continued to book imported ferrous scrap amid rising downstream demand. Pakistani currency depreciated to PKR168.18 against US$ 1 on Monday, from PKR167.66 on June 26, keeping trades limited.
On Monday, Karachi stock exchange was attacked by terrorists and the city was put under red alert. Its impact on trades, however, was minimal.
In the domestic market, Bala billet traded at PKR93,000/mt ex-Lahore plant Monday, unchanged from the prior week.
The Davis Index for US-origin containerized shredded settled at $276/mt cfr Port Qasim on Monday, up by $1/mt from Friday. Trades for US-origin shredded were reported at $275-278/mt cfr Qasim despite offers at $278-282/mt cfr Qasim from suppliers in the UK and Europe.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled, Monday, at $260/mt cfr Qasim, up by $2/mt from Friday. The index for US-origin HMS 1&2 (80:20) was at $255/mt cfr Qasim, down by $2/mt from Friday. A few trades concluded at the index price.