Imported ferrous scrap prices inched down on Monday due to a widened gap between bids and offers. Prices in South Asian markets fell despite bulk trades reported in the Turkey market at higher prices.
The Davis Index for containerised shredded settled at $273.8/mtcfr India subcontinent, down by $2.1/mt from $275.9/mt cfr on Friday.
The Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $256.95/mt cfr India subcontinent, down from $258.15/mt by $1.20/mt cfr from Friday.
India
Indian buyers remain pessimistic about a recovery in finished steel demand for two months at the minimum. Trades, therefore, are likely to be hit in the period.
The Davis Index for containerised shredded settled at $270/mt cfr Nhava Sheva, down $1/mt from Friday, with trades for US-origin scrap in containers at $265-270/mt cfr Nhava Sheva. Most mills, though were away from these levels as they continue to struggle with finished steel demand. Bids fell below $265/mt cfr Nhava Sheva said a trader.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $255/mt cfr Nhava Sheva, unchanged from Friday. Only a handful of buyers were interested to book scrap from Dubai at prices below $245/mt cfr Nhava Sheva.
The index for US-origin HMS 1&2 (80:20) settled at $255/mt cfr Nhava Sheva, unchanged from Friday. A few offers for the grade in containers were at $250-255/mt cfr Nhava Sheva with buyers targeting $240-245/mt cfr.
Bangladesh
Steelmakers were largely away from trades as they await clarity on the market’s dynamics. Monsoons have slowed construction activity and buyers are adopting a just-in-time inventory strategy.
Domestic ship breaking scrap was offered at BDT26,500/mt ex-yards, a prefered choice for many mills due to its competitive prices. Sponge iron offered from India was at $250/mt cfr Chattogram, dispatched through waterways, another viable option for Bangladeshi furnaces. Additionally, truck movement between these two countries has also resumed.
The Davis Index for US-origin containerised shredded settled at $282/mt cfr Chattogram, down by $1/mt from Friday. Offers from Europe and UK yards were at $290/mt cfr Chattogram. Trades for shredded from Australia and New Zealand closed at $275-280/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) inched up by $2/mt to $260/mt cfr Chattogram. Offers for #1 HMS from Brazil, Chile and Europe were at $265-270/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $265/mt cfr Chattogram, down by $1/mt from Friday.
Pakistan
Pakistan ferrous scrap importers turned silent on Monday with the economic activities, especially steel production losing its pace.
The Davis Index for US-origin containerized shredded settled at $278/mt cfr Port Qasim, down by $3/mt from Friday. Trades for US-origin shredded were at $275-278/mt cfr Qasim despite offers of $280-283/mt cfr Qasim from suppliers in the UK and Europe.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $265/mt cfr Qasim, unchanged from Friday in absence of trades. At present only a handful of traders from UAE are offering material and prices are also likely to drop to $250-255/mt cfr Qasim amid weakened demand.
The index for US-origin HMS 1&2 (80:20) was at $260/mt cfr Qasim Monday, down $2/mt from Friday.
The commercial Bala billet traded on Monday at PKR94,000/mt ex-yards Lahore, inclusive of local taxes, up by PKR1000/mt from the prior week. Trades for domestic mixed HMS and P&S scrap were at PKR72,000-72,500/mt delivered mill Lahore up by PKR500-800/mt from Friday.
Taiwan
Imported ferrous scrap prices in Taiwan fell further on Monday amid thin trades and weakened domestic fundamentals.
The Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $230/mt cfr Taiwan on Friday, down by $2/mt. Trades for US-origin #1 HMS were confirmed at $237-240/mt cfr on Friday while for HMS 1&2 (80:20) at $230-232/mt cfr on Monday showing a decline in buying prices.
With the demand for finished steel remaining slow, market participants believe prices could fall further. A drop in domestic scrap prices could also weigh down imported scrap offers in the coming days. Steelmaker Feng Hsin lowered its bids for domestic scrap by NTD200/mt to NTD6,700/mt delivered plant on Monday.
Bids for South American-origin HMS 1&2 (80:20) in FEUs were at $215-220/mt cfr Taiwan.
In small bulk markets, bids for Japanese HMS 1&2 (50:50) were at $240/mt cfr Taiwan and busheling scrap offers were at $260-265/mt cfr Taiwan.
($1=Rs74.63; PKR166.43;BDT84.61;NTD29.41)