Containerised imported scrap prices in most Asian markets were pressured by weak demand. Still, imported scrap offers to buyers in Pakistan and India did not fall. Mills, however, stayed away from those prices and dropped their bids following global cues.
The daily Davis Index for containerised shredded settled at $263/mt cfr Nhava Sheva on Wedneday, down by $1/mt from the prior week. Shredded in containers was offered at $265-270/mt cfr Nhava Sheva. Most UK and European suppliers were interested to offer Pakistani buyers willing to pay higher prices.
The daily Davis Index for UAE-origin HMS 1&2 (80:20) in containers remained flat at $250/mt cfr Nhava Sheva. There were no fresh offers in the market. The UAE government has announced a ban on ferrous scrap exports for four months.
The daily index for US-origin HMS 1&2 (80:20) dropped to $248/mt cfr Nhava Sheva, down by $3/mt on Wednesday. Bids by mills were at $240/mt cfr Nhava Sheva for HMS 1&2 (80:20) from the US and the UK. There were only a few suppliers in the Indian market.
Shipbreaking has gradually resumed at Alang but 70pc of labourers were away from yards. Ships have received permissions to beach at coasts.
In Pakistan, the daily Davis Index for US-origin containerised shredded settled at $273/mt cfr Port Qasim on Wednesday, down by $2/mt. Shredded from the UK traded at $275-277/mt cfr Qasim despite offers at $280/mt cfr Qasim. Mills in the southern region booked shredded at $273-275/mt cfr Qasim.
Week-long Eid holidays would end on May 31 after which steelmakers could resume ferrous scrap bookings.
The daily Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $250/mt cfr Qasim, unchanged. Most importers awaited clarity on UAE’s scrap export ban.
The daily index for US-origin HMS 1&2 (80:20) was at $248/mt cfr Qasim, down by $2/mt. Bids from mills were in the range of $240-245/mt cfr Qasim for July shipments.
Pakistan steel mills were unable to open new LCs as they looked to clear utility bills before Eid holidays.
Bangladesh imported scrap market remained silent ahead of Eid holidays starting May 24. The daily Davis Index for containerised shredded settled at $273/mt cfr Chattogram on Wednesday, down by $2mt.
The daily index for Latin America-origin HMS 1&2 (80:20) inched down by $1/mt to $243/mt cfr Chattogram. Trades concluded at the index price. Many mills still held their bids in the range of $235-240/mt cfr Chattogram.
The daily index for US-origin HMS 1&2 (80:20) settled at $253/mt cfr Chattogram, down from $255/mt cfr Chattogram. There were very few offers for US containerised scrap amid limited global supply.
Imported ferrous scrap prices in Taiwan continued to drop as mills lowered their bids further.
The daily Davis Index for containerised US-origin HMS 1&2 (80:20) fell by $6/mt to $223/mt cfr Taiwan on Wednesday. Offers for US-origin HMS 1&2 (80:20) were reported at $220-225/mt, cfr Taiwan. With no bids for US-origin containerised shredded, prices are likely to fall by $5 to $235/mt cfr Taiwan in TEUs this week.
Demand for ferrous scrap usually reduces during peak summer months due to power cuts and a slowdown in production. A fall in demand was also a result of rain forecast for 10 successive days beginning Wednesday. Buyers bid for HMS 1&2 (80:20) at $220/mt.
Domestic suppliers decreased offers for scrap to NTD7,300-7,500/mt, down by NTD200/mt with indications of the market falling further.