Imported ferrous scrap bookings in Pakistan and Bangladesh are still slow with the COVID-19 pandemic yet to come under control. An uptick in Chinese steel prices had turned Pakistani ferrous scrap importers optimistic late last week. In Bangladesh, the lockdown has been extended until June 6, which has dampened the sentiment. The market direction remains uncertain and trades could continue at a slow pace.
The daily Davis Index for containerized shredded rose by $2.5/mt to $510/mt cfr Port Qasim and the index for US-origin HMS 1&2 (80:20) rose by $4/mt to $489/mt cfr Port Qasim. Offers from UK and US suppliers remained firm amid healthy demand for scrap in their domestic markets.
The daily index for UAE-origin HMS 1&2 (80:20) rose by $1/mt to $474/mt cfr Port Qasim. Suppliers raised offers following a recovery in Turkey’s overseas scrap purchase prices. But mills in all three sub-continental markets, India, Pakistan, and Bangladesh, continued to bid at least $15/mt lower than current offers.
Besides the lockdown extension, the southwest monsoon is also set to arrive soon, which could keep steel demand and prices under pressure.
The daily Davis Index for containerized shredded rose by $2.5/mt to $532.5cfr Chattogram and the index for US-origin containerized HMS 1&2 (80:20) up by $2.5/mt to $510/mt cfr. Sellers in the US and UK kept their offers firm on elevated container freight rates.
In Turkey, scrap prices climbed as demand improved. The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) inched up by $0.19/mt on Tuesday to $502.50/mt cfr on Tuesday in anticipation of buyers returning to the market.