Most buyers have decided to pause containerized ferrous scrap bookings expecting prices to fall. Domestic steel prices lost steam amid strong resistance by end-users, including the builders’ association.
The daily Davis Index for containerized shredded, Monday, settled at $485/mt cfr Chattogram, down by $15/mt. Most large mills either held enough stocks or have booked cargoes in the past few days which limited containerized trades. On Monday, asking prices were at $485-490/mt cfr Chattogram, while buying interest was below $480/mt cfr Chattogram.
Chattogram-based steelmakers booked cargoes to refill their depleting inventories last week, after which they turned silent. Other mills have decided to wait for prices to drop before they purchase more tonnages. In the bulk market, yards offered HMS 1&2 (80:20) at $490-500/mt cfr Chattogram.
The daily Davis Index for containerized HMS 1&2 (80:20) of US-origin, settled at $465.71/mt cfr Chattogram, down by $11.79/mt. Late last week, a deal for 1,000mt of UK origin HMS #1 was at $480/mt cfr Chattogram, a price down by $10/mt from the prior bulk deal earlier that week. On Monday, buyers were interested in price levels below $460-465/mt cfr Chattogram for HMS 1&2 (80:20) from Australia, Latin America-origin.
The daily Davis Index for containerized HMS 1&2 (80:20) of Latin-origin settled at $465/mt cfr Chattogram, down by $10/mt as buyers lowered bids. Offers for HMS #1 from Chile were at around $470-475/mt cfr Chattogram.
Indian sellers offered Sponge iron at $370-380/mt Cpt Benapole or $380-390/mt cfr Chattogram, down by $10/mt. Offers for Australian HMS 1&2 (80:20) on Monday were at $470/mt cfr Chattogram against bids of $455-460/mt cfr.
Domestic steel stays under pressure
Prices for shipbreaking scrap equivalent to P&S continued to decline with offers at BDT40,500-41,500/mt ex-works on Monday, down BDT1,000/mt from Friday. Offers for domestic HMS 1&2 (80:20) were at BDT39,500-40,000/mt ex-yards Chattogram. Trades for billets were at BDT50,000-50,500/mt ex-works Chattogram. Mills continued to offer discounts to encourage trades.
Finished steel consumption has recovered from earlier months on the resumption of infrastructure projects. But end-users were unwilling to accept present steel price levels. Large steelmakers looked to sell finished steel, especially rebar, at prices above BDT70,000-71,000/mt ex-works. But with buyers unwilling for purchases at these levels, mills offered discounts of BDT1,000-1,500/mt to encourage sales. The spread between scrap-rebar rose to $292.5/mt from $284.5/mt on January 15.
Medium-scale mills in Dhaka sold rebar at BDT60,000-61,000/mt ex-works. The Pakistani government has appealed mills to liquidate stocks immediately in response to complaints by the builders’ association alleging unreasonable price hike and cartelization in the steel and cement industry.