Imported ferrous scrap prices in South Asia declined further on weakened demand. Suppliers lowered their offers as scrap supply eased and July shipment prices for finished steel reduced in their respective domestic markets.
With the mill ramping up production, inventories at hand have started dipping. Despite booking bulk cargo of 37,000mt from a US West Coast supplier on Friday, a steelmaker is said to be market for two more bulk cargoes. The earlier cargo comprised of 13,000mt HMS 1&2 (80:20) at $275/mt cfr Chattogram and 24,000mt shredded at $280/mt cfr Chattogram.
The Davis Index for containerised shredded settled at $287/mt cfr Chattogram, down by $3/mt from Monday. Bids from mills were at $280-285/mt cfr Chattogram, on Tuesday. Buyers were in search of lower offers from Australia, New Zealand, Brazil from $285-290/mt cfr Chattogram levels from Europe and the UK yards.
The index for Latin America-origin HMS 1&2 (80:20) inched down by $2/mt to $261/mt cfr Chattogram. Brazilian HMS 1&2 (80:20) traded in the range of $260-265/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $270/mt cfr Chattogram, down by $3/mt from Friday. HMS 1&2 (80:20) of African and Australian- origin traded at $270-275/mt cfr Chattogram.
Indian are still opting for lower-priced domestic scrap and sponge iron. A few buyers are waiting for prices to fall before booking material.
The daily Davis Index for containerised shredded settled at $273/mt cfr Nhava Sheva, down by $2/mt. Offers were at $275-280/mt cfr Nhava Sheva for material from the UK and Europe. But mills stayed away from bidding amid a sharp fall in rebar and domestic scrap prices.
The Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $255/mt cfr Nhava Sheva, down by $3/mt from Friday. 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 $251/mt cfr Nhava Sheva, down by $4/mt from Monday. Brazilian and West African HMS 1&2 (80:20) in containers traded at $240-245/mt cfr Nhava Sheva, down by $10/mt from the prior week on increased supply.
Pakistan ferrous scrap importers continued to book ferrous scrap in containers as per their requirement. Trades were thin amid uncertainty in the market caused by rising COVID-19 cases in the major steel-producing regions. The government has announced a 20-day smart lockdown restricting movement in Lahore. The number of cases predicted to reach their peak in July which has hurt market sentiment.
The Davis Index for US-origin containerized shredded settled at $281/mt cfr Port Qasim, down by $4/mt from Monday. Offers were at $285/mt cfr Qasim from suppliers in the UK and Europe. Mills and traders are, however, not keen on these levels. Bids dropped on Tuesday at $275-278/mt cfr Qasim.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $263/mt cfr Qasim, unchanged from Monday in absence of any new offers.
The index for US-origin HMS 1&2 (80:20) was at $262/mt cfr Qasim, down by $1/mt from Monday. A few offers were at $262-265/mt cfr Qasim with bids below $255-260/mt cfr Qasim on Tuesday.
Imported ferrous scrap prices in Taiwan fell by $2/mt on Tuesday with the index for US HMS 1&2 (80:20) settling at $243/mt cfr Taiwan. Bids were at $240-$243/mt cfr as Taiwanese steel mills reduced buying.
Mills are likely to stay away from trades till the first week of July as the country is set to celebrate Dragon boat festival from June 25-28.
Bids for Australian-origin HMS 1&2 (80:20) were at $235/mt cfr with no major deal heard. In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $255-265/mt cfr Taiwan, down by $5-10/mt from Friday.