Imported ferrous scrap trades resumed in Pakistan this week with Eid holidays coming to an end. Mills in India and Bangladesh, however, slowed down container bookings.
A Kandla steelmaker was heard to have booked a bulk cargo comprising 10,000mt of HMS1&2 (80:20) and 20,000mt of shredded at an average price of $280/mt cfr Kandla. The trade indicates that market sentiment is turning positive. A shortage of domestic ferrous scrap also gave prices a lift. Shredded in containers was offered at $285/mt cfr Nhava Sheva after the bulk booking with no trades reported at those levels on Tuesday.
In containers market, the daily Davis Index for containerised shredded settled at $279/mt cfr Nhava Sheva, down by $1/mt from the prior day. The index, however, has been calculated before the bulk trade concluded.
Traders bid at $275-280/mt cfr Nhava Sheva for P&S cargoes. The daily Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled flat at $260/mt cfr Nhava Sheva on Tuesday. The daily index for US-origin HMS 1&2 (80:20) was at $258/mt cfr Nhava Sheva, up by $2/mt from the prior day. Offers for HMS 1&2 (80:20) were reported at $260/mt cfr Nhava Sheva depending on origins.
Domestic steel prices dropped by PKR500/mt from the prior week.
Pakistan currency depreciated late last week to PKR165 against $1 from PKR160.60 on last Wednesday, which dampened the market sentiment. The Davis Index for US-origin containerized shredded settled at $284/mt cfr Port Qasim, up by $1/mt from Tuesday. Shredded offers from the UK and European suppliers rose to $285-290/mt cfr Qasim as they anticipate demand to improve in the coming days.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $263/mt cfr Qasim, down by $1/mt from Monday. The daily index for US-origin HMS 1&2 (80:20) was at $260/mt cfr Qasim, unchanged. Offers were at $265/mt cfr Qasim but bids at $255/mt cfr Qasim.
The Davis Index for containerised shredded settled at $288/mt cfr Chattogram, up by $1/mt from Tuesday. Offers for shredded were in the range of $285-290/mt with no bids in the market.
The index for Latin America-origin HMS 1&2 (80:20) inched up by $2/mt to $255/mt cfr Chattogram. Brazilian traders raised offers due to increased enquiries by Indian mills. Some traders were interested to take a position for high sea cargoes offered in the range $255-260/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled unchanged at $263/mt cfr Chattogram.
Imported ferrous scrap prices in Taiwan inched up by $1/mt on Tuesday with the index for US HMS 1&2 (80:20) settling at $231/mt. Offers for US HMS 1&2 (80:20) were at $235-237/mt cfr Taiwan due to increased global prices driven by bulk bookings by Turkish mills. Ongoing rains and weak finished steel sales kept trades low. Bids from steelmakers were heard $218/mt cfr Taiwan for US-origin HMS 1&2 (80:20).
A mill in north Taiwan raised purchase price for HMS 1&2 (80:20) by NT$200/mt to NT$6,700-6,900/mt. Demand for ferrous scrap is slowing down. The rise in price is merely on the back of increased imported scrap offers.