Imported ferrous scrap prices dropped on Thursday amid bearish global ferrous scrap. Buyers resisted present offers expecting prices to lower further before booking more material.
The daily Davis Index for containerised shredded settled at $274/mt cfr India subcontinent, down by $1.65/mt from $275.65/mt.
The Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $255.30/mt cfr India subcontinent, down by $1.45/mt from $254.75/mt on Wednesday.
India
In northern India, demand was subdued as production activities remain limited. Trades were heard in Chennai and Gujarat.
The daily Davis Index for containerised shredded settled at $273/mt cfr Nhava Sheva, unchanged on Thursday. Offers for the grade were at $275-280/mt cfr Nhava Sheva from the US, UK and Europe. A few bids for shredded were reported at $265-270/mt cfr Nhava Sheva and $275-280/mt Chennai and Vizag. Very thin trades for shredded were heard at these levels as some steelmakers looked to refill their falling inventories.
Prices for Brazilian and West African HMS 1&2 (80:20) in containers remained unchanged at $240-245/mt cfr Nhava Sheva over the week. Domestic ferrous scrap prices in some markets have increased by Rs500-700/mt in the last couple of days. Thus, trades for imported scrap are likely to rise in the coming days.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $253/mt cfr Nhava Sheva, unchanged from Wednesday. Only a handful of buyers were interested to book scrap from Dubai at prices below $250/mt cfr Nhava Sheva.
The index for US-origin HMS 1&2 (80:20) was at $251/mt cfr Nhava Sheva, down by $1/mt from Wednesday. A few offers were at $250-255/mt cfr Chennai with no buyers in the market.
Bangladesh
Bangladeshi steelmakers are waiting for prices to fall further before booking more scrap. Imported scrap prices softened in the Turkish markets impacting offers in other seaborne markets.
The Davis Index for containerised shredded settled at $283/mt cfr Chattogram, down by $3/mt from Wednesday. Very limited bids from mills were at $280/mt cfr Chattogram for shredded from Australia and New Zealand. Offers from the UK and European yards in containers were at $290/mt cfr Chattogram, with no buyers willing to pay these prices.
Japanese ferrous scrap prices fell by over JPY2,000/mt in export markets and thus a few buyers raised inquiries for small bulk cargoes. Bids were heard for #2 HMS at $265-270/mt cfr Chattogram. But Japanese suppliers were unwilling to match these bids hoping Vietnamese mills to pay more than these levels.
The index for Latin America-origin HMS 1&2 (80:20) inched down by $1/mt to $260/mt cfr Chattogram. Brazilian HMS 1&2 (80:20) traded in the range of $255-260/mt cfr Chattogram. The index for US-origin HMS 1&2 (80:20) settled at $266/mt cfr Chattogram, down by $1/mt from Wednesday.
Pakistan
Pakistan ferrous scrap importers continued to book imported ferrous scrap amid rising downstream demand.
In the domestic market, Bala billet traded flat this week PKR93,000-94,000/mt ex Lahore plant, after rising by PKR2000/mt early this week from the prior week.
The Davis Index for US-origin containerized shredded settled at $277/mt cfr Port Qasim, down by $3/mt from Wednesday. Trades for US-origin shredded were reported at $275-280/mt cfr Qasim despite offers of $280-285/mt cfr Qasim from suppliers in the UK and Europe.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $261/mt cfr Qasim, down by $2/mt from Wednesday in absence of trades. A few trades for mixed HMS 1 and P&S reported at $265/mt cfr Qasim with bids at $255-260/mt cfr.
The index for US-origin HMS 1&2 (80:20) was at $260/mt cfr Qasim, unchanged from Wednesday. A few trades concluded at the index price.
At Gadani ship recycling yard, ship importers have increased inquiries as market sentiment turned positive due to lowered import duties. Though, many small-scale mills and recyclers are still facing liquidity issues.
($1=Rs75.64; PKR167.34)