Imported ferrous scrap prices in South Asia remained mixed on Monday. In Turkey, bulk imported scrap prices fell by $2/mt on Friday, and buyers in South Asia expected the week to begin with lowered offers. But suppliers held onto firm offers.
The Davis Index for containerized shredded Thursday settled at $280.55/mt cfr India subcontinent, up by $1.1/mt from Friday.
The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $259.7/mt cfr India subcontinent, up by $1.45/mt from $258.25/mt from Friday.
India
Many small to medium-sized mills in India are distressed to sell to keep cash flowing. Most are finding it difficult to tide over the COVID-19 impact. Additionally, lowered billet prices in both, the domestic and export markets have pulled down the demand for imported scrap.
A major induction furnace steelmaker in Gujarat reportedly sold 10,000mt billets at $391/mt cnf Indonesia or $371/mt fob India today. Earlier, trade for 6000mt of billets in containers was heard at $373/mt fob India with a Malaysian buyer against the offers of $375/mt fob India for Southeast Asian buyers last week.
Electricity prices in most areas are expected to reduce pulling down the input cost for furnaces.
In a bulk market, US west coast supplier offered shredded at $275/mt cfr Kandla with bids vastly lagging at $250-255/mt cfr Kandla. Sellers have thus turned their attention to Bangladesh or Pakistan where bids are not as low.
The daily Davis Index for containerized shredded settled at $277/mt cfr Nhava Sheva, up by $1/mt from Monday. Offers for US-origin HMS 1 &2 (80:20) were in the range of $280-285/mt cfr Nhava Sheva. A few trades in containers were reported at $278-280/mt cfr Nhava Sheva.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $260/mt cfr Nhava Sheva, up by $1/mt from Friday. US and European yards expect the ban on scrap exports from South Africa and UAE to support their prices.
The index for US-origin HMS 1&2 (80:20) settled at $260/mt cfr Nhava Sheva, up by $2/mt from Friday. Suppliers are offering the grade at $260-265/mt cfr Nhava Sheva with buyers at $245-250/mt cfr Nhava Sheva levels.
Bangladesh
Few Bangladeshi steelmakers were in the market for imported ferrous scrap on Monday as their inventories dipped. Steel demand in the country has started reviving.
Davis Index heard about a negotiation between a major steelmaker in the country and a US West Coast supplier for 32,000mt ferrous scrap. There was no confirmation, however, till evening.
Offers for US-origin HMS 1&2 (80:20) were at $275/mt cfr Chattogram.
Domestic ship breaking scrap offers remained competitive as prices dropped to BDT25,500-26,000/mt ex-yards amid increased availability.
The Davis Index for US-origin containerized shredded settled at $292/mt cfr Chattogram, unchanged from Friday. Offers from Europe and UK yards were flat at $290-295/mt cfr Chattogram. Sellers from Australia and New Zealand offered shredded cheaper at $280-285/mt cfr Chattogram, unchanged from last week.
The index for Latin America-origin HMS 1&2 (80:20) settled flat at $265/mt cfr Chattogram from Friday. Offers for #1 HMS from Brazil, Chile, and Europe were also flat at $270-275/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $275/mt cfr Chattogram, unchanged from Friday.
Pakistan
The Davis Index for US-origin containerized shredded settled at $284/mt cfr Port Qasim, unchanged from Friday. Despite limited end-user demand, mills continued trades for imported scrap amid limited raw material inventories.
Trades for US-origin shredded were at $280-284/mt cfr Qasim. Offers from supplier yards in UK/Europe were around $285-287/mt cfr Qasim. Few trades concluded at $284-287/mt cfr Qasim.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $265/mt cfr Qasim, up by $2/mt from Friday. Trades for UAE-origin HMS 1&2 (80:20) were at $265-270/mt cfr Qasim. The index for US-origin HMS 1&2 (80:20) was at $260/mt cfr Qasim, unchanged from Friday.
Prices for commercial Bala billet were at PKR93,000-93,500/mt ex-yards Lahore, inclusive of local taxes. Trades for domestic mixed HMS and P&S scrap were at PKR73,000/mt delivered Lahore mill, up by PKR500/mt from Friday.
Taiwan
Imported scrap prices in Taiwan were flat on Monday with no trades heard. The ongoing 2020 Pacific typhoon season expected to last till August at the minimum is likely to hit demand. Buyers thus were not keen on higher prices. The Davis Index for containerised US-origin HMS 1&2 (80:20) was unchanged at $230/mt cfr Taiwan from Friday.
Offers for US-origin HMS 1&2 (80:20) were at $230-235/mt cfr while bids were at $225-228/mt cfr Taiwan. A fall in Japanese scrap by JPY500/mt is likely to pull export prices down this week.
In the domestic market, scrap and rebar prices remained flat. Domestic steelmaker Feng Hsin steel rolled over the prices from the prior week.
In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $240/mt cfr Taiwan. Buyers are expecting another $5/mt drop in the coming days due to lowered bids by Hyundai Steel by JPY500/mt for Japanese scrap on Monday.
($1=Rs75.19; BDT84.79; PKR167.24; TWD29.44)