South Asian imported ferrous scrap market was silent on Tuesday as mills struggled with weak downstream demand. Bangladeshi buyers booked containers at prices which were slightly higher than the last week, while Pakistani mills purchased on need basis.
In Turkey, the daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) declined by $1.83/mt to $287.50/mt cfr on Monday. Bids did not exceed $285/mt cfr for HMS 1&2 (80:20) from the USA and the Baltic region and $280/mt cfr for the same grade from Europe. The depreciation of Turkish currency pushed rebar offers up by TRY20-30/mt this week in the domestic market.
Bangladesh mills remain distressed in the face of weak domestic steel sales for over a quarter resulting in inventory pile-ups. Imported scrap prices remained unviable for most secondary steelmakers. With the arrival of bulk cargoes in September, mills now have enough for their production requirements.
A few buyers were interested in buying containers over bulk cargoes, despite prices for the latter dropping to a two-month low.
The daily Davis Index for containerized shredded, Tuesday, was at $320.94/mt cfr Chattogram, up by $1.15/mt. Buyers preferred to buy shredded from Australia and Africa in containers amid quicker deliveries at $320-322/mt cfr Chattogram.
UK yards were unwilling to offer material below $328-330/mt cfr Chattogram.
In the bulk market, two Japanese small bulk cargoes deals were confirmed, including a #2 HMS deal at $305-307/mt cfr and busheling (shindachi) scrap at $328-330/mt cfr Chattogram. These prices represent a $10/mt drop from the prior bulk deal in early September. Prices are likely to drop further in the coming days.
The index for containerized US-origin HMS 1&2 (80:20) settled at $303.21/mt cfr Chattogram, up by $3.83/mt from Monday. Sellers offered HMS 1&2 (80:20) at $305-310/mt cfr Chattogram from South America, while bids were at $295-300/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) settled at $299/mt cfr Chattogram, up by $2/mt from Monday. Offers were scarce and most Brazilian traders sought $300-305/mt cfr Chattogram for HMS 1&2 (80:20) as domestic demand remains firm in their home country. Trades for HMS 1&2 (90:10) from the US west coast were reported at $309/mt cfr Chattogram.
Domestic shipbreaking scrap equivalent to P&S traded at BDT30,500-31,000/mt ex-yard Chattogram, unchanged from last week. HMS 1&2 (80:20) was priced at BDT28,500-29,000/mt ex-yard Chattogram.
Domestic small and medium-scale mills kept domestic scrap purchase prices flat. Domestic billets traded at BDT40,000-40,500/mt ex-works, unchanged from the last week with expectations of an increase in prices. Small-scale producers offered rebar at BDT49,000-49,500/mt ex-works.
In Bangladesh, prolonged weak domestic finished steel demand and delays in the resumption of infrastructural projects have forced steelmakers to curtail production. The secondary steel sector has already been operating below 50pc capacity.
Pakistani scrap buyers are still in a wait-and-watch mode seeking clarity on the price direction. Domestic finished steel demand is yet to recover.
The Davis Index for containerized shredded settled at $308.11/mt cfr Port Qasim, up by $1.92/mt from Monday. A few containerized shredded scrap deals from European yards were reported at $305-307/mt cfr Port Qasim. Offers from US yards were at $308-310/mt cfr Port Qasim.
Amid increased buying interest in India, HMS scrap prices in Pakistan are now expected to end their downtrend with offers registering an uptick. The Davis Index for UAE-origin HMS 1&2 (80:20), Tuesday, settled at $286/mt cfr Port Qasim, up by $2/mt from Monday. Buyers lowered bids for HMS 1&2 (80:20) to $282-285/mt cfr Port Qasim. Trades for UAE-origin mixed #1 HMS and P&S sarya scrap were reported at $295-300/mt cfr Port Qasim, unchanged from the prior week.
The index for US-origin HMS 1&2 (80:20) settled at $287.14/mt cfr Port Qasim, up by $2.14/mt. Most US-based yards were unwilling to offer large volumes citing expectations of a stronger market in October. Offers were at $290/mt cfr Port Qasim against bids of $285/mt cfr Qasim Monday. LMS scrap traded at $265/mt cfr Qasim.
In the domestic market, Bala billet prices were unchanged at PKR91,000-91,200/mt ex-works Punjab with thin trades. Domestic Pure Q toke scrap equivalent to shredded traded at PKR71,000-71,300/mt del Lahore plant. Weakened demand for finished steel and a slower-than-expected recovery in infrastructure projects prevented domestic prices from gaining momentum. Traders expect scrap demand to recover around mid-October breaking a month-long sluggishness.
($1= PKR163.74; BDT84.)