Prices for imported ferrous scrap in South Asian markets were flat on Thursday after rising earlier this week. Buyers were few in the market and they resisted raised offers by suppliers. Indian steelmakers are still struggling with labour shortages, liquidity issues and subdued end-user demand, keeping trades slow. A few traders showed interest in taking a position for July-August shipments and booked HMS scrap this week. They, however, stayed away from shredded scrap, offers for which they found high.
Trades are expected to register an uptick in the next month when end-user demand is expected to revive.Though, trades could still be subdued as construction activity during the monsoon remains slow. In the northern region, production has resumed and piled inventories have started dipping. Thus, mills increased enquiries for HMS scrap.
The daily Davis Index for containerised shredded settled unchanged at $285/mt cfr Nhava Sheva. Shredded in containers was offered at $285-290/mt cfr Nhava Sheva but there were no buyers in the market. Bids for shredded were at $275-280/mt cfr Nhava Sheva. Buyers in southern India have enough inventories of shredded scrap and are expected to remain away from the market.
Ahead of the Monsoon season, buyers were hesitant to place orders.
The daily Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $265/mt cfr Nhava Sheva, up by $1/mt. The daily index for US-origin HMS 1&2 (80:20) was at $262/mt cfr Nhava Sheva, up by $1/mt. Trades for HMS 1&2 (80:20) were reported in the range of $260-265/mt cfr Nhava Sheva depending on origins. Brazilian HMS 1&2 (80:20) traded at $265/mt cfr Chennai and Turnings traded at $225-230/mt cfr Nhava Sheva.
In Pakistan trades for ferrous scrap reported at higher prices will activities by mills gaining momentum.
The Davis Index for US-origin containerized shredded settled at $287/mt cfr Port Qasim, unchanged from the prior day. Trades for shredded were heard in the range of $285-287/mt cfr Qasim.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $265/mt cfr Qasim, up by $1/mt from Wednesday. South African suppliers resumed offers to Pakistan and India. HMS 1&2 (80:20) traded at $260-265/mt cfr Qasim, up by $5-10/mt from the prior week.
The index for US-origin HMS 1&2 (80:20) was at $265/mt cfr Qasim, unchanged from Wednesday. Offers of $265-270/mt cfr Qasim were countered with bids of $260/mt cfr Qasim.
Buyers are waiting for clarity in the market direction before resuming bookings.
The Davis Index for containerised shredded settled at $292/mt cfr Chattogram, down by $1/mt from Wednesday. Offers for shredded were in the range of $300-305/mt with bids at $290/mt cfr Chattogram. No major trade was reported.
The index for Latin America-origin HMS 1&2 (80:20) fell by $1/mt to $264/mt cfr Chattogram from Wednesday. Offers from Brazilian traders rose due to increased enquiries by Indian mills.
The index for US-origin HMS 1&2 (80:20) settled at $270/mt cfr Chattogram.
Steel mills were interested to book Brazilian P&S scrap in containers at around $275-280/mt cfr Chattogram with offers at $290/mt cfr Chattogram.
Imported ferrous scrap prices in Taiwan rose by $2/mt on Thursday with the index for US-origin HMS 1&2 (80:20) settling at $238/mt cfr Taiwan. Offers for US HMS 1&2 (80:20) were at $240/mt cfr Taiwan, but thin trades were reported at $238/mt cfr Taiwan.
In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $260-265/mt cfr Taiwan and busheling scrap offers were at $280-285/mt cfr Taiwan. Japanese bulk shredded deal was heard at $272-273/mt cfr Taiwan.