Imported ferrous scrap markets turned silent on account of Eid-al-Adha on Wednesday, especially in Pakistan, Bangladesh, and UAE. Trading is, therefore, expected to be impacted this week as transportation and banking activities stay shut.
Taiwanese imported ferrous scrap offers were flat on Wednesday. Feng Hsin steel rolled over its rebar sales and scrap purchase prices for the week on Monday. Buyers sought HMS of Australia and Latin America-origin offered at prices $5/mt and $10/mt lower, respectively, compared to US-origin material.
Amid weak demand, the daily Davis Index for US-origin containerized HMS 1&2 (80:20) settled at $454/mt cfr Taiwan, down $1/mt from Tuesday. A decline in domestic Japanese ferrous scrap prices kept offers in the export market under pressure.
The sentiment in East Asia was dampened by a dip in the Chinese steel futures. Southeast Asian mills were under pressure to sell finished steel in export markets as the demand remained hit due to COVID-19 restrictions.
The daily Davis Index for containerized shredded, Wednesday, was unchanged at $541.75/mt cfr Port Qasim. Mills faced a shortage of laborers as people have traveled to their hometowns for Eid celebrations.
In the domestic market, amid weak sales, rebar, billet, and domestic scrap prices remained flat on Wednesday. Rebar was at PKR160,000-160,500/mt ex-works Karachi and PKR159,000-159,500/mt ex-works Punjab. Domestic Bala billet was at PKR130,000/mt ex-works. Domestic scrap, Art Q toke scrap (equivalent to a mix of HMS and P&S), and Pure Q toke scrap (equivalent to shredded) at PKR100,300-100,800/mt and PKR102,300-102,800/mt ex-yard Lahore.
Bangladeshi mills were also away from the imported scrap market amid Eid-al-Adha festivities. Like in Pakistan, there was a shortage of laborers and sluggish finished steel sales, keeping production rates slow. Domestic steel prices have remained largely flat for over a month.
The country will have another stringent lockdown for two weeks, starting July 23. Demand for imported ferrous scrap is likely to stay dull during the period.
The daily Davis Index for containerized shredded on Tuesday was unchanged at $552.5/mt cfr Chattogram. Trading for shredded could to pick up only after holidays.
On weak domestic demand, HMS bids lagged behind present offer levels. The daily index for containerized HMS 1&2 (80:20) from the US was at $531.25/mt cfr Chattogram, down $1.25/mt in a silent market. Easing HMS supply in the US East Coast and Europe for HMS pulled prices down.
The indexes for containerized Australia and Latin America-origin HMS 1&2 (80:20) were unchanged at $527/mt and $515/mt cfr Chattogram, respectively.
($1=PKR160.85, BDT84.76, TWD28.09)