Imported ferrous scrap prices in South Asia remained firm amid strong finished steel markets in most countries. Trades were few in Pakistan and Bangladesh as participants were largely away from the market due to Eid-al-Adha holidays.
The Davis Index for containerized shredded rose by $0.95/mt from Friday to settle at $303.23/mt cfr India subcontinent. Indications for shredded scrap remained firm amid limited supply coupled with a resumption in bookings by Indian buyers.
The index for containerized US-origin HMS 1&2 (80:20) settled at $284.45/mt cfr India subcontinent, up by $1.26/mt on Monday.
In Turkey, US-origin HMS 1&2 (80:20) bulk prices neared $280/mt cfr Turkey reaching a five-month high.
Pakistani ferrous scrap importers have been largely away since Friday. A few buyers, strained for material, raised their bids. But bookings are expected to pick up only after the Eid holidays conclude.
The Davis Index for containerized shredded settled, Monday, at $305.14/mt cfr Port Qasim, up by $0.43/mt from Friday. Trades for US-origin shredded were at $302-305/mt cfr Port Qasim. Offers by UK suppliers for the grade were at $308-310/mt cfr Port Qasim as they expect bookings to increase once markets resume.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $296.43/mt cfr Port Qasim, up by $0.18/mt from Friday. Trades for UAE-origin HMS 1&2 (80:20) were reported at $295-300/mt cfr Port Qasim and #1 HMS was offered at price levels above $305/mt cfr Port Qasim.
The index for US-origin HMS 1&2 (80:20) settled at $286.67/mt cfr Qasim, up by $1.46/mt from Friday. Trades for US-origin HMS 1&2 (80:20) were reported at $285-290/mt cfr Port Qasim with a few suppliers quoting $290-295/mt cfr Port Qasim.
In the domestic market, steel prices are expected to move up after the holidays. Two new dam constructions have been announced by the government which could spur domestic steel demand in the coming days. Bala billet was priced at PKR92,000/mt ex-works Lahore, inclusive of local taxes. Domestic mixed HMS and P&S scrap was sold at PKR72,500-73,000/mt delivered Lahore mill.
Prices of imported ferrous scrap in India remained high as inquiries gained momentum even as buyers stayed away on account of the Rakshabandhan holiday. The Davis Index for containerized shredded settled at $302.57/mt cfr Nhava Sheva, up by $1.53/mt from Friday. Offers for UK/ European-origin containerized shredded were at $305-310/mt cfr Nhava Sheva against bids of $300-302/mt.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $286/mt cfr Nhava Sheva, up by $1/mt from Friday. UAE suppliers stayed away from the market due to Eid holidays. A few trades for Brazilian and Australian HMS 1&2 (80:20) closed at $280/mt cfr Mundra and Nhava Sheva with offers in the range of $285-290/mt cfr Nhava Sheva, with limited buyers on Monday.
The index for US-origin HMS 1&2 (80:20) settled at $283.88/mt cfr Nhava Sheva, up by $2.45/mt from Friday. Suppliers were not ready to accept bids below $285/mt cfr Nhava Sheva as international prices stay bullish.
Bangladesh steel mills stayed away from imported scrap trades due to a sharp rise in prices.
Domestic ferrous scrap prices were also firm amid rising demand and bullish import market. Domestic shipbreaking scrap was offered at BDT27,000/mt ex-yards Chattogram on Monday. Indian sponge iron export offers moved up in line with rising domestic prices to $275/mt cfr Chattogram.
The Davis Index for containerized shredded was $313/mt cfr Chattogram, up by $1.75mt on Monday. Offers for shredded from leading UK yards were at $315-320/mt cfr Chattogram on Monday, but buyers aggressively booked cheaper shredded from Australia/New Zealand at $290-295/mt cfr Chattogram late last week. Higher freight charges have made the scrap from the UK and Europe less viable for Bangladesh.
The index for Latin America-origin HMS 1&2 (80:20) settled at $290/mt cfr Chattogram, up by $0.50/mt on Monday. Trades were reported at the index price. Offers for #1 HMS from Brazil, Chile, and Europe were at $295/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) Monday was at $296.88/mt cfr Chattogram, up by $0.63/mt. Few trades were reported at the index price but most buyers did not find it viable.
Market update: Taiwan
On Monday, imported ferrous prices increased due to high offer levels on the back of healthy demand from Turkish mills. Trades in South Asian markets have also started rising which kept the market sentiment positive.
The Davis Index for containerized US-origin HMS 1&2 (80:20) was up by $5/mt at $253/mt cfr Taiwan on Monday with trades also heard at $255/mt cfr. Offers for South American HMS 1&2 (80:20) were at $245/mt, while for Australian-origin, they were at $250/mt with no trades reported at those price levels. Demand for finished steel continued to be under pressure, while manufacturers stocked up for an expected surge in September demand.
Domestic prices for ferrous scrap and rebar increased by TWD200/mt on Monday. Rebar prices were at TWD14,200/mt in Southern Taiwan and TWD14,400/mt in mid and northwestern Taiwan. However, owing to weak demand, steel manufacturers offered TWD200/mt discount to push sales.
Japanese small bulk cargoes of HMS 1&2 (50:50) were offered at $265-268/mt cfr Taiwan with no trades being heard. Ferrous scrap export prices from Japan increased by JPY500-1000/mt on Monday.
($1=TWD29.39; BDT84.72; PKR167.37)