Imported ferrous scrap prices in South Asia continued to trend up as buyers in Pakistan and Bangladesh resumed trades post-Eid holidays on Thursday. Pakistani buyers bids $5-7/mt higher than prior week taking imported scrap prices in the Indian subcontinent to a six-month high.
The daily Davis Index for containerized shredded rose by $2.95/mt from Wednesday to settle at $309.26/mt cfr India subcontinent. In Pakistan, containerized shredded Thursday traded at $308-312/mt cfr Qasim as buyers return to market after Eid break. The index for containerized US-origin HMS 1&2 (80:20) settled at $290.42/mt cfr India subcontinent, up by $1.98/mt on Thursday.
Pakistan
Pakistan’s imported ferrous scrap prices show an uptick post Eid, though full fledged trading is expected from the next week. Many scrap traders have booked materials to avoid higher prices. Finished steel demand remains low in Pakistan but prices are likely to improve with rising input costs.
The Davis Index for containerized shredded settled, Thursday, at $311.72/mt cfr Port Qasim, up by $3.72/mt from Wednesday. US and Europe-origin shredded traded at $308-312/mt cfr Port Qasim. While UK-based offers rose to $312-315/mt cfr Port Qasim.
Scrap demand remains strong in Pakistan as most of the infrastructure projects are expected to resume operations soon. The government also announced new projects in the China-Pakistan corridor infusing optimism in the market.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $298.21/mt cfr Port Qasim, up by $0.96/mt from Wednesday. UAE-origin mix #1 HMS and P&S traded at $305-310/mt cfr Port Qasim.
The index for US-origin HMS 1&2 (80:20) settled at $292.5/mt cfr Qasim, up by $2.07/mt from Wednesday. Trades for both US and UK-origin HMS 1&2 (80:20) were heard at $290-295/mt cfr Port Qasim with a few suppliers holding offers for better prices. Busheling was offered at $315-317/mt cfr Port Qasim.
Commercial bala billet traded at PKR92,500/mt ex-works, up PKR500/mt on Thursday, while rebar traded at PKR111,000-112,000/mt ex-works Karachi flat from the pre-Eid trades. Heavy rains in the Karachi region and non-availability of labours impacted the steel production in the country.
India
Offers for imported ferrous scrap in India maintained their upward trajectory as steel prices in the country continued to rise. Buyers shied away from higher offers as they await clarity from Turkish markets.
In the bulk market, a shredded cargo of around 30,000mt was offered at $310/mt cfr Kandla and $315/mt cfr Chattogram by US-based suppliers, but no trades were confirmed at these levels. Limited availability of material with mills and traders is likely to boost trades in the coming days.
Billet export offers to Southeast and China-based buyers remained flat this week after rising to $425-430/mt cfr China or $400-405/mt fob India. Buyers from the Philippines stayed away from the market amid lockdown.
The Davis Index for containerized shredded settled at $309.25/mt cfr Nhava Sheva, up by $2.25/mt from Wednesday. Few offers for UK-origin containerized shredded were heard at $308-312/mt cfr Nhava Sheva and fewer buyers were interested to bid for the same.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $288.75/mt cfr Nhava Sheva, up by $2.50/mt from Tuesday. Offers for HMS 1&2 (80:20) from UK and Brazil were at $280/mt cfr Mundra and Nhava Sheva.
Offers for US-origin HMS 1&2 (80:20) were at $290-293/mt cfr Nhava Sheva on Thursday. The index for US-origin HMS 1&2 (80:20) settled at $289.29/mt cfr Nhava Sheva, up by $1.43/mt from Wednesday. Suppliers were not ready to accept bids below $285-290/mt cfr Nhava Sheva as international prices remained bullish. A few mills raised their bids by $3-5/mt from late last week to procure material.
Bangladesh
Bangladeshi mills continued to delay containerized scrap purchases amid high offers. Domestic finished steel demand remained subdued, but are expected to recover as monsoon slows. Steel prices are expected to rise amid positive market sentiment but buyers have held back bids citing delay in resumption of government projects.
A bulk deal of 30,000mt at price below $10-15/mt than current market levels is heard in the market, however, confirmation is awaited.
In the domestic market, shipbreaking scrap sold at BDT27,000-27,500/mt ex-yards, up BDT500/mt from the late last week. Though domestic scrap prices increased in step with rising imported scrap offers, the gap between domestic and imported scrap is still high with domestic scrap priced significantly lower and preferred by mills.
The Davis Index for containerized shredded settled at $315/mt cfr Chattogram, up by $1.87/mt from Wednesday. Offers for shredded from UK yards were heard at $320/mt cfr Chattogram on Thursday, but buyers were interested in lower-priced shredded from Australia/New Zealand which traded at $295-300/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) settled at $295/mt cfr Chattogram, up by $1.67/mt on Thursday. Offers for #1 HMS from Brazil, Chile, and Europe were at $300/mt cfr Chattogram, countering bids of $290/mt cfr Chattogram from small steelmakers.
The daily index for US-origin HMS 1&2 (80:20) Thursday settled at $302.5/mt cfr Chattogram, up by $3.75/mt. Suppliers refused to offer HMS 1&2 (80:20) below $300/mt cfr Chattogram.
($1=Rs74.99;PKR168.66;BDT84.85)