Imported ferrous scrap prices in South Asia rose further on Thursday as Turkish mills remained active for bulk bookings. Although prices in the Indian subcontinent were bullish, demand for scrap in India and Bangladesh remains tepid.
The daily Davis Index for containerized shredded, Thursday, settled at $284.65/mt cfr India subcontinent, up by $1.45/mt from $283.20/mt cfr. Tight supply forced supplier yards to hold onto their material for higher prices in the coming days.
The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $262.65/mt cfr India subcontinent, up by $1.7/mt from $260.95/mt cfr. Bids for US-origin HMS 1&2 (80:20) were in the range of $255-258/mt cfr Qasim.
In Turkey, August shipment trades for ferrous scrap were reported at marginally higher prices, and the Davis Index for US-origin HMS 1&2 (80:20) on Wednesday settled at $258.82/mt cfr Turkey, up by $0.65/mt from a day earlier and up by $3.33/mt from the prior week.
Pakistan
Pakistani steel mills continued to book containers to refill their inventories. Continued demand for steel in the country ahead of the monsoons has given ferrous scrap trades an impetus. Also, lowered taxes on imported scrap supported trades in the country.
The Davis Index for US-origin containerized shredded settled at $289/mt cfr Port Qasim Thursday, up by $1/mt from Wednesday. Steel mills in the country were bidding for containerised shredded at $285-287/mt cfr Qasim, but UK/EU yards offered the grade above $290/mt cfr Qasim. Pakistan mills are bidding higher than their Indian counterparts.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $275/mt cfr Qasim, up by $2mt from Wednesday. Trades for a mix #1 HMS and P&S from UAE reported at $278-280/mt cfr Qasim on Thursday. There were only a handful of suppliers offering UAE material in the market. UAE-origin HMS 1&2 (80:20) were at $270-275/mt cfr Qasim.
The index for US-origin HMS 1&2 (80:20) was at $263/mt cfr Qasim, unchanged from Wednesday.
Prices for commercial Bala billet were flat on Thursday at PKR93,500/mt ex-yards Lahore, inclusive of local taxes. Trades for domestic mixed HMS and P&S scrap were at PKR73,000-73,200/mt delivered Lahore mill.
Recyclers in Gadani shipbreaking yards raised their bids to $315-325/ldt for container ships and dry bulk carriers, the highest among the three major countries. Cutting operations, however, could take a little longer amid labour shortages.
India
Though Indian mills were unwilling to match the prevailing offer levels, buying interest improved in the last two days, mainly as inventories with mills are depleting. Domestic ferrous scrap, though limited in supply was priced lower than imported scrap.
The daily Davis Index for containerized shredded settled at $280/mt cfr Nhava Sheva, up by $2/mt from Wednesday. Offers for US-origin shredded moved up to $285/mt cfr Nhava Sheva. Suppliers are very unlikely to accept present bid levels due to scarce supply, opined traders.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $260/mt cfr Nhava Sheva, up by $5/mt from Wednesday.
A steelmaker in the North Indian city of Ludhiana is said to have increased production and booked Brazilian HMS 1&2 (80:20) at $255-260/mt cfr Mundra and Nhava Sheva, up by $5-10/mt from the prior week. Indian mills bid for UAE and US-origin HMS 1&2 (80:20)
The index for US-origin HMS 1&2 (80:20) settled at $262/mt cfr Nhava Sheva, up by $4/mt from Wednesday. Suppliers are offering the grade at $265/mt cfr Nhava Sheva with buyers at $250/mt cfr Nhava Sheva levels on Wednesday.
Bangladesh
Containerised ferrous scrap imports in Bangladesh were limited pressured by lowering domestic steel prices. Heavy monsoons and rising COVID-19 cases held back steelmakers from keeping their outputs at optimum levels. Domestic ship breaking scrap offers remained competitive at BDT25,500-26,000/mt ex-yards as supply eased.
The Davis Index for US-origin containerized shredded settled at $295/mt cfr Chattogram, up by $2/mt from Thursday. Offers from Europe and UK yards were at $295-300/mt cfr Chattogram.
With rising Japanese scrap prices, mills may have to raise their bids to procure material.
The index for Latin America-origin HMS 1&2 (80:20) settled at $273/mt cfr Chattogram, up by $3/mt from Wednesday. Offers for #1 HMS from Brazil, Chile, and Europe were at $280/mt cfr Chattogram on Thursday.
Sellers from Australia and New Zealand offered shredded at $285/mt cfr Chattogram and #1 HMS traded at $278-280/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $281/mt cfr Chattogram, up by $3/mt from a day prior with trades reported at around $280/mt cfr Chattogram. Offers for #1 HMS from leading yards were at $285-290/mt cfr Chattogram with no buyers to counter these.
Market update Japan
After six price cuts announced since June 25, Tokyo Steel raised prices at Utsunomiya plant by JPY500/mt effective July 17 for all grades of scrap. Prices, however, were unchanged at the other four plants in the country. In July the mill had lowered bids three times. After the recent revision, bids for #2 HMS were at JPY22,000/mt ($205/mt) delivered Utsunomiya plant in the Kanto region, JPY23,500/mt delivered Kyushu and JPY23,000/mt delivered Okayama plant.
($1=Rs75.24; BDT84.78; PKR167.27;JPY107.15)