Imported containerized ferrous scrap prices in South Asia maintained their upward trajectory though a few buyers moved sideways for prices to cooled-off. Buyers are waiting for clarity from the global markets. Domestic steel prices rose in India amid higher scrap prices, while Bangladeshi steel mills booked bulk cargoes for immediate consumption helping overall sentiments in the imported ferrous scrap market. Suppliers continued to hold materials expecting better prices.
In Turkey, US-origin HMS 1&2 (80:20) bulk prices rose by another $5/mt from the last week. A few bulk deals were heard at higher prices. US-origin HMS (80:20) in bulk cargoes traded at $285/mt cfr Turkey lifting offers amid limited availability of scrap.
The Davis Index for containerized shredded on Tuesday to settle at $306.82/mt cfr India. Supplier yards kept offers high while buyers insisted on lower offers to secure material amid limited supplies. The index for containerized US-origin HMS 1&2 (80:20) settled at $288.79/mt cfr India subcontinent. Drop-in container freight rates pulled down the indexes in the subcontinent.
Bangladesh
Bangladeshi steel mills remained slow with limited inquiries for imported scrap in containers. Demand for domestic steel is, however, expected to spur in the last quarter of 2020.
Bulk cargo bookings heard in early August was confirmed on Tuesday. A Chattogram-based steelmaker had booked 32,000mt cargo mixed scrap from the US west coast, with 27,000mt at $300/mt cfr Qasim and 5,000mt at $295/mt cfr Chattogram. Offers on Tuesday were at $315/mt cfr Chattogram indicating market to have moved up by $15/mt.
The daily Davis Index for containerized shredded settled at $318.33/mt cfr Chattogram, up by $1.33/mt from Monday. Offers for shredded from leading UK yards were, however, around $320-325/mt cfr Chattogram on Tuesday. Most steel mills in Dhaka remained away from scrap trades at a high price and sought lower-priced shredded with shorter delivery periods from other origins.
Few deals for Australian shredded were heard at $310-315/mt cfr Chattogram for limited volumes amid tight supply from these regions.
The index for Latin America-origin HMS 1&2 (80:20) settled at $300/mt cfr Chattogram, up by $2.14/mt on Tuesday. Offers for #1 HMS from Brazil, Chile, and Europe were at $305/mt cfr Chattogram with bids at $295/mt cfr Chattogram from small steelmakers. The index for US-origin HMS 1&2 (80:20), Friday, was at $304/mt cfr Chattogram, up by $0.07/mt from Friday. Yards kept offers for HMS 1&2 (80:20) above $305-308/mt cfr Chattogram while trades closed at $303-305/mt cfr Chattogram.
Pakistan
Pakistani ferrous scrap importers slowed their purchases seeking clarity from global markets. Though traders and suppliers are hopeful that Pakistani mills would bid at higher prices amid a short supply of domestic scrap and other alternatives such as DRI and pig iron. Finished steel prices in the country were firm fuelled by an increase in imported scrap prices. Though many steel mills delayed deals amid liquidity crunch.
Gadani-based shipbreaking yards remained most active in the scrapped vessel market. Demand is driven by the government’s incentives for steel businesses. Recyclers bid $30/ldt higher than competitors to secure vessels for dismantling activities.
The daily Davis Index for containerized shredded settled, Tuesday, at $313.87/mt cfr Port Qasim, up by $0.08/mt from Monday. Trades for the US and Europe-origin shredded were at $310-313/mt cfr Port Qasim. Offers by UK-based suppliers for the grade were at $315-317/mt cfr Port Qasim as they expect bookings to increase in the coming days.
Most stalled infrastructure projects are expected to resume soon. In the domestic market, finished steel prices for Bala billet reported at PKR92,500/mt and G-60 billet at PKR97,000/mt ex-works Punjab. High input costs and limited cash flows held activity slow, however, the COVID-19 situation recovered faster than other subcontinental markets.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $302.5/mt cfr Port Qasim, up by $2.5/mt from Monday. Trades for UAE-origin mixed #1 HMS and P&S were at $305-307/mt cfr Port Qasim. Most UAE suppliers are managing to supply materials despite an official ban.
The index for US-origin HMS 1&2 (80:20) settled at $296.25/mt cfr Port Qasim, up $1.25/mt from Monday, although most US yards sought to trade at $300-305/mt cfr Port Qasim.
India
Indian domestic steel prices continued to strengthen further driven by a rise in global steel prices. Offers for imported ferrous scrap in India too maintained their uptrend. Limited availability of material with mills and traders are likely to support demand and prices.
The Davis Index for containerized shredded settled at $312.38/mt cfr Nhava Sheva, up by $0.88/mt from Monday. Few offers for UK/European origin containerized shredded were at $313-317/mt cfr Nhava Sheva on Tuesday. Suppliers held offers high citing the uptrend in other subcontinental markets.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $295.63/mt cfr Nhava Sheva, up by $2.77/mt from Monday. UAE suppliers returned to the market after Eid holidays.
Offers for US-origin HMS 1&2 (80:20) were at $293-295/mt cfr Nhava Sheva on Tuesday. The index for US-origin HMS 1&2 (80:20) settled at $292.78/mt cfr Nhava Sheva, up by $1.28/mt from Monday. A few mills raised their bids by $3-5/mt from late last week levels to procure containers.
($1=Rs74.96; PKR168.53; BDT84.87)