Imported ferrous scrap price trends in South Asia were mixed Tuesday with buyers holding back their purchases expecting a correction in the global market. Suppliers have returned to the scrap market with ample tonnages as collection rates improved in many regions. Though domestic steel demand is strong in India and Pakistan, mills have opted to wait for a correction before bookings material.
In Turkey, US-origin HMS 1&2 (80:20) bulk prices dropped by $1.25/mt to $283.5/mt cfr Turkey. The Turkish currency Lira has hit a record low of 7.4 against the US dollar.
Bangladesh’s steel production resumed this week and inquiries for scrap have increased. The impact of heavy rains and flood has subsided and production activity is now expected to pick up. The daily Davis Index for containerized shredded settled at $322.5/mt cfr Chattogram unchanged from Monday. Suppliers from the UK continued to offer the grade at $325-330/mt cfr Chattogram. Steel mills in Dhaka are likely to raise their bids and meet these levels over the week. Some mills are also likely to seek South American containerized scrap.
The index for Latin America-origin HMS 1&2 (80:20) settled at $305.00/mt cfr Chattogram, down by $0.83/mt. A few containers traded at $300-305/mt cfr Chattgram depending on quality. Offers for #1 HMS from Brazil, Chile, and Europe were at $308-310/mt cfr Chattogram with bids at $300/mt cfr Chattogram from small-scale steelmakers.
The index for US-origin HMS 1&2 (80:20) settled at $307.5/mt cfr Chattogram down by $1.25/mt from Monday. Sellers offered HMS 1&2 (80:20) at $310-315/mt cfr Chattogram. Trades, however, were not reported above $310/mt cfr Chattogram levels. Most suppliers believe prices are unlikely to fall in the current market. Although Bangladesh’s domestic scrap prices rose in line with global cues and recovering demand, shipbreaking scrap traded at BDT30,000-31,000/mt delivered mills Chattogram.
Pakistani ferrous scrap importers were silent Tuesday as they held their bids anticipating a correction. Mills opined, if not immediately, prices are sure to drop next week. Finished steel prices in the country are expected to soften in the coming days if demand remains subdued. Amid cash constraints, most trades have failed to materialize.
The Davis Index for containerized shredded settled at $314.86/mt cfr Port Qasim, down by $1.31/mt on Friday. Trades for the US and Europe-origin shredded were at $310-313/mt cfr Port Qasim. Offers from UK supplier yards for the grade were at $315-318/mt cfr Port Qasim.
In the domestic market, Bala billet traded at PKR92,500/mt ex-works Punjab. Semi-finished steel prices have been rangebound for around two weeks. Domestic scrap suppliers returned to the market on Monday after a long break, with shredded scrap Q toke traded at PKR73,000-73,500/mt ex-works.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $305/mt cfr Port Qasim, down by $1.75/mt from Monday. Offers for UAE-origin mixed #1 HMS and P&S were at $310-312/mt cfr Port Qasim on Tuesday, while buyers targeted $300/mt cfr as the new acceptable levels. Most UAE suppliers have managed to stay in the market despite an official ban on exports.
The index for US-origin HMS 1&2 (80:20) settled at $299.64/mt cfr Port Qasim, down by $2.24/mt from Monday. Most US yards offered material at $300-305/mt cfr Port Qasim. A few trades were reported at $295-298/mt cfr Port Qasim.
($1= PKR167.6; BDT84.47)