Imported ferrous scrap offers in India, Pakistan and Bangladesh increased following a rise in Turkish ferrous scrap prices. Suppliers raised offers in anticipation of a recovery in demand with Eid-holidays coming to an end. Though, downstream demand in these countries remained limited.
Market sentiment was positive as trades resumed, albeit, at limited volumes. Most mills are awaiting clarity on the market direction amid the COVID-19 pandemic. Prices of sponge iron and domestic scrap remained competitive over imported scrap.
The daily Davis Index for containerised shredded settled at $280/mt cfr Nhava Sheva up $5/mt. Shredded in containers was offered at $280-285/mt cfr Nhava Sheva but there were no buyers in the market. Bids for shredded were at $270-275/mt cfr Nhava Sheva. A few mills with limited inventories resumed enquiries and bought scrap in low volumes. Demand for semi-finished steel like billets increased in the both, domestic and exports markets.
Trades for scrap from Australia, South Africa and Latin America were at $250-255/mt cfr Nhava Sheva and $255-260/mt cfr Chennai. The daily Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $259/mt cfr Nhava Sheva up $4/mt from the prior week. The daily index for US-origin HMS 1&2 (80:20) was at $255/mt cfr Nhava Sheva, up $2/mt.
Mills are keen to restart production but face a shortage of workers. Casual workers across India have returned to their hometowns amid the lockdown. Many cities have reported a rapid increase in new COVID-19 cases.
Indian buyers are likely to book imported scrap in the next two weeks but with the onset of monsoon in June, consumption of steel in sectors like construction will slow down and reduce demand.
Pakistan’s ferrous scrap buyers returned to the market after Eid holidays. Mills are expected to ramp up their production in the coming days. The Davis Index for US-origin containerized shredded settled at $283/mt cfr Port Qasim, up $5/mt. Bids for US-origin shredded were reported at $270-275/mt cfr Qasim, but suppliers shied away. Offers from the UK and European suppliers rose to $285/mt cfr Qasim as they anticipate demand to improve in the near term.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $263/mt cfr Qasim, up by $5/mt from Monday. South African-origin #1 HMS traded at $260/mt cfr Nhava Sheva and $265/mt cfr Qasim.
The index for US-origin HMS 1&2 (80:20) settled at $258/mt cfr Qasim, up by $3/mt from Wednesday. Availability of ferrous scrap with US suppliers is improving but weak demand could pressure prices, said traders.
Imported scrap prices in Bangladesh moved up on higher offers from suppliers and traders amid thin trade. Many mills are waiting for end-user demand to pick up before ramping up production. Banking and financial activities will continue to be slow until May 31, the final day of Eid holidays.
Major steelmakers have restarted plants after the government allowed resumption of steel production. Most medium and small-scale furnaces are still shut as workers have travelled to their hometowns for Eid celebrations. The Davis Index for containerised shredded settled at $290/mt cfr Chattogram, up by $7/mt from Wednesday. Offers for shredded were in the range of $290-295/mt with no bids in the market.
The index for Latin America-origin HMS 1&2 (80:20) settled at $258/mt cfr Chattogram, up by $3/mt with some trades. The index for US-origin HMS 1&2 (80:20) settled at $265/mt cfr Chattogram, up by $2/mt from the prior day.