Imported shredded scrap prices in South Asia increased as buyers accepted higher offers to secure material amid a shortage of scrap in the domestic market.
The daily Davis Index for containerized shredded Tuesday rose by $1.42/mt to settle at $296.77/mt cfr India subcontinent from Monday. Most yards remained bullish and held back materials on hopes of a further rise in prices over the week.
The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $279.18/mt cfr India subcontinent, up by $2.17/mt from Monday.
In Turkey, major steel mills raised their bids for bulk ferrous scrap purchase on improved finished steel prices and as suppliers refused to offer scrap at lower prices.
The Davis Index for US-origin HMS 1&2 (80:20) on Friday had settled at $271.3/mt cfr Turkey, up by $0.3/mt from a day ago and by around $18/mt from July 10.
Pakistan
Pakistani ferrous scrap importers slowed after buying aggressively for the past two weeks in containers. The economy picked up amid lower COVID-19 infections in the country. Still in many regions of the country authorities have extended smart lockdown restrictions for another 10 days. In South, heavy rains hampered trades.
Scrap importers anticipate steel demand to pick up post Eid holidays. Eid-al-adha holidays have started Tuesday and the market will reopen next Monday. Trades for imported scrap are, however, less likely to be impacted.
The Davis Index for containerized shredded settled Tuesday at $300/mt cfr Port Qasim, up by $1.25/mt from Monday. Trades for US-origin shredded were at $295-298/mt cfr Qasim and trades for UK-origin shredded were reported at $300-302/mt cfr Qasim. Offers for the grade on Tuesday were at $300-305/mt cfr Qasim with a few mills refusing offers over $300/mt cfr Qasim.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $289.86/mt cfr Qasim, up by $0.93/mt from Monday. Trades for UAE-origin #1 HMS and P&S mixed were in the range of $295-300/mt cfr Qasim. However, buyers restricted trades to limited volumes amid a ban on ferrous scrap exports.
Trades for the UK and Brazilian HMS 1&2 (80:20) closed at $285-290/mt cfr Qasim, up by $10/mt from the prior week. Trades for Brazilian Busheling were heard at $310-312/mt cfr Qasim, while UAE-origin P&S traded at $305/mt cfr Qasim.
The daily index for US-origin HMS 1&2 (80:20) settled at $282.5/mt cfr Qasim, up by $2.86/mt. Trades for US-origin HMS 1&2 (80:20) were heard at $280-285/mt cfr Qasim.
In the domestic market, steel prices dropped marginally by PKR500/mt with commercial Bala billet priced at PKR92,000-92,500/mt ex-works Lahore, inclusive of local taxes. Domestic mixed HMS and P&S scrap sold at PKR72,0000-72,500/mt delivered Lahore mill.
India
Indian imported ferrous scrap trades gained momentum with active enquiries this week. Strengthening domestic steel and other alternative prices prompted importers to book more scrap. Also, the expected shortage of domestic scrap could lead to more imports in the next few days.
Mills continued to receive billet export orders from South East Asia and China with prices improving by $10-15/mt from the prior week.
The daily Davis Index for containerized shredded Tuesday settled at $294.25/mt cfr Nhava Sheva from the prior day. Offers for US-origin containerized shredded were at $295-300/mt cfr Nhava Sheva against bids of $288-290/mt cfr Nhava Sheva on Tuesday depending on origins. Mills could raise their bids to procure materials this week, said traders.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $277.5/mt cfr Nhava Sheva, up by $2.5/mt from Monday. Most UAE suppliers, however, preferred to sell material to Pakistan at higher prices.
A few trades for Brazilian and Australian HMS 1&2 (80:20) closed at $275/mt cfr Mundra and Nhava Sheva on Monday. Offers, however, rose to $280/mt cfr Nhava Sheva against bids of $265/mt cfr Mundra/ Nhava Sheva.
The daily index for US-origin HMS 1&2 (80:20) settled at $273.75/mt cfr Nhava Sheva, up by $2.81/mt from Friday. Suppliers are offering the grade at $275-280/mt cfr Nhava Sheva.
Bangladesh
Bangladesh’s steel market continued to be challenged by heavy rains and floods. No major deals concluded on Tuesday as importers remained cautious about bookings.
Prices for domestic billet and rebar remained hurt by weak demand. Small furnaces after discounts to stimulate sales. Billet offers stayed flat at BDT38,000-39,000/mt ex-works while rebar offers were at BDT49,000-50,000/mt ex-yards after discounts.
Higher prices for scrapped ships arriving into Bangladesh have translated into higher offers for domestic scrap this week. Domestic shipbreaking scrap traded at BDT24,000/mt ex-yards Chattogram.
The Davis Index for containerized shredded settled at $305.83/mt cfr Chattogram, up by $1.57/mt from Monday. Offers for shredded from leading UK yards remained at $305-310/mt cfr Chattogram, but buyers refused higher offers.
The index for Latin America-origin HMS 1&2 (80:20) settled at $285/mt cfr Chattogram, up from $282.5/mt on Monday. Offers for #1 HMS from Brazil, Chile, and Europe were at $285-290/mt cfr Chattogram. Brazilian traders shifted their focus from Bangladesh to Pakistani and Indian markets from where they expect both, higher volumes and prices.
The index for US-origin HMS 1&2 (80:20) Tuesday settled at $293.57/mt cfr Chattogram, up from $292/mt cfr Chattogram on Tuesday amid limited trades at $290-295/mt cfr Chattogram.
($1=Rs74.84; PKR166.88; BDT84.5)