South Asian imported scrap prices rose by $5-10/mt from the prior week as demand picked up. Limited supply of scrap also pushed prices up. A bulk cargo booking by Pakistan’s leading steel mill turned the market sentiment positive. Trades are likely to pick up not only in Pakistan, but also in India in the coming days. Bangladesh mills, however, are in a wait-and-watch mode for clarity in price direction.
Ship recycling activities remained suspended as cyclone Nisarga hit the West coast of India adding to to the persisting shortage of domestic scrap.
The daily Davis Index for containerised shredded settled at $285/mt cfr Nhava Sheva, up by $6/mt from the prior day. 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. A few mills with limited inventories in hand have resumed enquiries and thin trades took place. Demand for semi-finished steel like billets increased in both, domestic and exports markets.
The daily Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $265/mt cfr Nhava Sheva, up by $5/mt. The daily index for US-origin HMS 1&2 (80:20) was at $261/mt cfr Nhava Sheva, up by $3/mt. Trades for HMS 1&2 (80:20) were reported in the range of $260-265/mt cfr Nhava Sheva depending on origins.
Recyclers and importers have urged the government to take action against the shippers who refused to waive off port charges per the central government notification.
A leading steelmaker in Lahore booked a bulk cargo of 32,000mt shredded at $282.5/mt cfr Qasim on Tuesday.
The Davis Index for US-origin containerized shredded settled at $287/mt cfr Port Qasim, up by $3/mt. Offers from the UK and European suppliers rose to $285-290/mt cfr Qasim as they anticipate demand to improve.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $264/mt cfr Qasim, up by $1/mt from Tuesday. 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, up by $5/mt from Tuesday. Offers HMS 1&2 (80:20) were at $265-270/mt cfr Qasim but bids were at $260/mt cfr Qasim.
The Davis Index for containerised shredded settled at $293/mt cfr Chattogram, up by $5/mt from Tuesday. Offers for shredded were in the range of $300-305/mt with bids in the market at $290/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) moved up by $4/mt to $264/mt cfr Chattogram from Tuesday. Offers from Brazilian traders rose due to increased enquiries by Indian mills. Some traders were interested to take a position for high sea cargoes offered in the range $265/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $270/mt cfr Chattogram.
Imported ferrous scrap prices in Taiwan rose by $5/mt on Tuesday with the index for US-origin HMS 1&2 (80:20) settling at $236/mt due to a rise in offers to $240/mt. Offers rose driven by increased activity by Turkish mills. The Davis Index for HMS 1&2 (80:20) increased by around $9/mt to $254.63/mt cfr Turkey from May 20. Small bulk offers from Japan for HMS 1&2 (50:50) were at $260/mt. Bids were at $255/mt, thus no trades were heard.