Imported scrap offers in Pakistan and India remained high on persisting shortage of domestic scrap and increased demand. Though, in Bangladesh and Taiwan weak demand pressured prices.
Traders looked to clear up piled up stocks at ports with accumulating detention and demurrage charges hurting their pockets.
The daily Davis Index for containerised shredded remained unchanged at $264/mt cfr Nhava Sheva on Tuesday, up by $6/mt from the prior week. Shredded in containers was offered at $265-270/mt cfr Nhava Sheva however, mills were away from buying.
The daily Davis Index for UAE-origin HMS 1&2 (80:20) in containers was at $250/mt cfr Nhava Sheva, up by $2/mt. The index for US-origin HMS 1&2 (80:20) was at $251/mt cfr Nhava Sheva, up by $6/mt from Monday. US suppliers are likely to drop their offers for HMS scrap following global cues.
In Pakistan, the daily Davis Index for containerised shredded settled at $275/mt cfr Port Qasim on Tuesday, up by $2/mt. Shredded of US-origin traded at $275/mt cfr Qasim. UK suppliers raised offers to $280/mt cfr Qasim amid healthy demand before the Eid holidays.
The daily Davis Index for HMS 1&2 (80:20) UAE-origin settled at $250/mt cfr Qasim, up by $2/mt from Monday. Some UAE suppliers continue to offer ferrous scrap despite a government-declared export ban. Most traders though stayed away from offering cargos.
Imported scrap bids from Bangladesh steel mills dropped this week on a sharp drop in the domestic steel prices by BDT2,000-3,000/mt from the prior week. Bangladesh billet prices dropped to BDT40,500-41,000/mt ex- works and domestic ferrous scrap dropped by BDT2,000-3,000/mt to BDT26,500/mt del Chattogram mill from late last week.
The daily Davis Index for containerised shredded scrap settled at $275/mt cfr Chattogram on Tuesday, down $3/mt. Mills have to pay statutory expenses this week before they close for Eid holidays during May 21-31 and thus had limited liquidity.
Bangladesh Steel Manufacturers Association (BSMA) demanded stimulus package worth BDT30,000mn from the government to make up for an equal amount of losses amid the pandemic.
The daily index for Latin America origin HMS 1&2 (80:20) inched down by $1/mt to $245/mt cfr Chattogram. Trades concluded at the index price. Many mills still held their bids in the range of $235-240/mt cfr Chattogram.
The daily index for US-origin HMS 1&2 (80:20) settled at $255/mt cfr Chattogram, down from $258/mt cfr Chattogram. Bids dropped to $250-252/mt cfr Chattogram.
The daily Davis Index for containerised US-origin HMS 1&2 (80:20) fell by $1/mt to $229/mt cfr Taiwan on Tuesday. A deal for HMS 1&2 (80:20) was reported at $230/mt, unchanged from the day prior day. Offers then fell to $220-225/mt cfr Taiwan. There were no bids for US-origin containerised shredded and prices are expected to fall by $5/mt to $235/mt cfr Taiwan for TEUs this week.
Prices were on an uptrend for the past two weeks on the back of increased trades. But the outlook looks bearish for scrap prices in Taiwan. A forecast of rain for 10 successive days and power cuts announced by the Taiwan government in June would keep the demand for scrap subdued.