Imported ferrous scrap prices in South Asia are expected to stay firm despite limited trades. Trades in Pakistan and Bangladesh, two major South Asian buyers, are likely to pick up from next Monday. Laborers in the two countries are yet to return from Eid-al-Adha holidays.
The Davis Index for containerized shredded rose by $0.66/mt from Friday to settle at $303.89/mt cfr India subcontinent. Supplier yards kept offers high. Most offered limited material with expectations of prices rising further.
The index for containerized US-origin HMS 1&2 (80:20) settled at $285.48/mt cfr India subcontinent, up by $1.03/mt on Tuesday.
In Turkey, US-origin HMS 1&2 (80:20) bulk prices were at $278.45/mt cfr Turkey reaching a five-month high on Monday.
Pakistan
Pakistani ferrous scrap imports remained slow. Despite Eid holidays concluding, business activity has not picked up a pace.
The Davis Index for containerized shredded settled, Tuesday, at $306/mt cfr Port Qasim, up by $0.86/mt from Monday. Trades for the US and Europe-origin shredded were at $306-308/mt cfr Port Qasim. Offers by UK suppliers for the grade were at $310-312/mt cfr Port Qasim as they expect bookings to increase once markets resume.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $296.67/mt cfr Port Qasim, up by $0.24/mt from Monday. Trades for UAE-origin mix #1 HMS and P&S were at $300-305/mt cfr Port Qasim.
The index for US-origin HMS 1&2 (80:20) settled at $287.50/mt cfr Qasim, up by $0.83/mt from Monday. Trades for US-origin HMS 1&2 (80:20) were reported at $285-290/mt cfr Port Qasim with a few suppliers keeping offers unchanged at $290-295/mt cfr Port Qasim. Busheling was offered at $315-317/mt cfr Port Qasim with no buyers at the moment.
India
Offers of imported ferrous scrap in India maintained an upward trajectory as steel prices in the country started to rise. Most suppliers withdrew their previous offers and expected to quote fresh prices on Monday hoping to gain from rising finished steel prices. The Davis Index for containerized shredded settled at $303.25/mt cfr Nhava Sheva, up by $0.68/mt from Monday.
Offers for UK/ European-origin containerized shredded were at $308-310/mt cfr Nhava Sheva.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $286.25/mt cfr Nhava Sheva, up by $0.25/mt from Monday. UAE suppliers stayed away from the market due to Eid holidays. A few trades for Brazilian and Australian HMS 1&2 (80:20) closed at $280-285/mt cfr Mundra and Nhava Sheva. Offers were unchanged at $290/mt cfr Nhava Sheva, with limited buyers on Tuesday.
The index for US-origin HMS 1&2 (80:20) settled at $284/mt cfr Nhava Sheva, up by $0.12/mt from Monday. Suppliers were not ready to accept bids below $285/mt cfr Nhava Sheva as international prices stay bullish.
Bangladesh
Bangladesh steel mills stayed away from imported scrap as current price levels remained unviable for them. Concerns about rising COVID-19 cases could slow demand recovery in the steel sector at least till the quarter ends.
Mills preferred domestic over imported material. A bullishness in global scrap prices also played a role. Domestic shipbreaking scrap was offered unchanged at BDT27,000/mt ex-yards Chattogram on Monday.
The Davis Index for containerized shredded was at $312.5/mt cfr Chattogram, down by $0.50/mt Tuesday. Offers for shredded from leading UK yards were at $315/mt cfr Chattogram, but buyers were interested in lower-priced shredded from Australia/New Zealand which was offered at $295-300/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) settled at $292.5/mt cfr Chattogram, up by $2.50/mt on Tuesday. Offers for #1 HMS from Brazil, Chile, and Europe were at $295/mt cfr Chattogram.
The daily index for US-origin HMS 1&2 (80:20) Monday was at $297.5/mt cfr Chattogram, up by $0.62/mt.
($1=Rs75.07;PKR166.88;BDT84.58;TWD29.42)