Imported ferrous scrap prices in South Asian markets have started to fall amid rising disparity between bids and suppliers’ expectations. Global ferrous scrap prices, however, remain firm.
Prolonged weak demand and a drop in domestic billet and rebar prices, pulled bids from Indian mills further down. Bangladeshi mills too were in search of lower offers for containerised scrap and Pakistani mills stayed away from increased shredded offers.
Indian steel mills continue to be distressed by weak finished steel demand in the domestic market. Many steel mills opted for domestic scrap and sponge iron priced lower than imported scrap. A few buyers are waiting for prices to fall before booking material.
The daily Davis Index for containerised shredded settled at $280/mt cfr Nhava Sheva, down by $2/mt. Offers were at $285-290/mt cfr Nhava Sheva for material from the UK and Europe. Bids, however, were at $275/mt cfr Nhava Sheva on Thursday.
The Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $268/mt cfr Nhava Sheva, down by $2/mt from Wednesday. Buyers stayed away from UAE-origin scrap as the middle eastern country has announced a ban on ferrous scrap exports for four months.
The index for US-origin HMS 1&2 (80:20) settled at $268/mt cfr Nhava Sheva, down $2/mt from Wednesday. A few trades for the UK and European HMS 1&2 (80:20) concluded at $260/mt cfr Nhava Sheva. Brazilian and West African HMS 1&2 (80:20) traded at $250-255/mt cfr Nhava Sheva, down by $5-10/mt from the prior week.
Pakistan government has announced 20-day smart lockdown restricting movement in Lahore as COVID-19 cases continued to rise. A reduction in scrap import duties announced during the national budget failed to boost trades.
The Davis Index for US-origin containerized shredded settled at $286/mt cfr Port Qasim, down by $2/mt from Wednesday. Thin trades were reported at $285-287/mt cfr Qasim. Offers are at $290/mt cfr Qasim from the UK and Europe.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $270/mt cfr Qasim, down by $1/mt from Wednesday.
The index for US-origin HMS 1&2 (80:20) was at $275/mt cfr Qasim, unchanged from Wednesday. A few offers were at $280/mt cfr Qasim with bids below $270/mt cfr Qasim.
Imported scrap prices in Bangladesh declined amid limited buying interest. Mills are operating at a 50pc capacity in Dhaka. Yet, inventories have started building up as the monsoon season has slowed construction and allied activities.
The country is also struggling to contain the spread of COVID-19 and most areas in the capital city and Chattogram lie within designated red zones with stringent restrictions.
The Davis Index for containerised shredded settled at $298/mt cfr Chattogram, unchanged from Wednesday but down by $5/mt from the prior week. Trades for shredded in containers were reported at $297/mt cfr Chattogram. Offers were at $300-305/mt cfr Chattogram.
Sellers from Australia and New Zealand offered shredded at $285-290/mt cfr Chattoram.
The index for Latin America-origin HMS 1&2 (80:20) inched down by $1/mt to $273/mt cfr Chattogram. Offers for Brazilian HMS 1&2 (80:20) were in the range of $280-285/mt cfr Chattogram but trades were heard at $260-265/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $283/mt cfr Chattogram, unchanged from Wednesday. Steel mills lowered their bids for material from the US amid availability of lower-priced HMS 1&2 (80:20) in containers from New Zealand, which traded at $282-283/mt cfr Chattogram.