South Asian imported ferrous scrap prices continued to rise as suppliers raised offer prices further. Yards in the US and UK cited a supply crunch. Pakistani buyers booked more containerized scrap on Wednesday. After resisting for a week, mills in Mundra and Goa accepted offers for HMS scrap at prices which were $5-10/mt higher than their bids.
The daily Davis Index for containerized shredded, Wednesday, settled at $289.17/mt cfr India subcontinent, up by $0.57/mt from $288.60/mt cfr.
The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $270.45/mt cfr India subcontinent, up by $2.5/mt from $267.95/mt cfr.
In Turkey, another 4-5 bulk deals for August shipments were reported, supported by healthy finished steel demand. The Davis Index for US-origin HMS 1&2 (80:20) on Tuesday settled at $266.25/mt cfr Turkey, up by $1.33/mt from a day ago and $8/mt from the prior week.
Finished steel demand in Pakistan has improved considerably from the last month when the country remained under a stringent lockdown.
The Davis Index for US-origin containerized shredded settled at $292.86/mt cfr Port Qasim Wednesday, up by $0.86/mt from Tuesday. Trades for US-origin shredded were at $290/mt cfr Qasim and UK-origin shredded was sold at $293-295/mt cfr Qasim. Offers for shredded on Wednesday were at $295-298/mt cfr Qasim with mills unwilling to accept prices over $290/mt cfr Qasim.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $286.5/mt cfr Qasim, up by $1.5/mt from Tuesday. Trades for UAE-origin HMS 1&2 (80:20) were at $285-287/mt cfr Qasim.
Offers for P&S were in the range of $292-295/mt cfr Qasim. Busheling trades were reported at $305-307/mt cfr Qasim from Brazilian suppliers.
The daily index for US-origin HMS 1&2 (80:20) was at $272.5/mt cfr Qasim, up by $2.5/mt. Trades for US-origin HMS 1&2 (80:20) were reported at $270-275/mt cfr Qasim.
Prices for commercial Bala billet prices remained unchanged from Tuesday at PKR93,00/mt ex-works Lahore, inclusive of local taxes. Trades for domestic mixed HMS and P&S scrap were reported at PKR72,500/mt delivered Lahore mill, unchanged from the prior day.
The daily Davis Index for containerized shredded, Wednesday, settled at $286.13/mt cfr Nhava Sheva, up by $0.13/mt. Offers for US-origin containerized shredded were at $288-293/mt cfr Nhava Sheva though a few mills continued to bid at $275-280/mt cfr Nhava Sheva. Sellers were unwilling to sell at these levels.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $267.5/mt cfr Nhava Sheva, up by $1.5/mt from Tuesday. Most UAE suppliers, however, preferred to sell material in Pakistan for higher prices.
A few trades for Brazilian HMS 1&2 (80:20) were at $260-265/mt cfr Mundra and Nhava Sheva on Monday.
The index for US-origin HMS 1&2 (80:20) settled at $267.5/mt cfr Nhava Sheva, up by $1.5/mt from Tuesday. Suppliers are offering the grade at $270-275/mt cfr Nhava Sheva.
Davis Index sources state Bangladesh steel mills have booked around two mixed ferrous scrap bulk cargoes from US West Coast suppliers at $270-275/mt cfr Chattogram.
Several small bulk cargoes were booked from Japan. Japanese #2 HMS and busheling was offered at $275-280/mt and $295-300/mt cfr Chattogram, respectively.
The Davis Index for US-origin containerized shredded settled at $297.5/mt cfr Chattogram, up by $0.5/mt from Tuesday. Offers from European and UK yards were at $300-305/mt cfr Chattogram. But Dhaka-based mills booked Australia and New Zealand-origin shredded, priced lower at $290/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) settled at $282.5/mt cfr Chattogram, up from $279.58/mt on Tuesday. Offers for #1 HMS from Brazil, Chile, and Europe were at $285-290/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $287.5/mt cfr Chattogram, up from $285/mt cfr Chattogram on Tuesday, with trades reported in the range of $285-290/mt cfr Chattogram.
EAF capacity expansion project by one of the major ship recyclers in the country remains delayed due to COVID-19 restrictions in the country. Thus, the recycler offered more ferrous scrap in the market at lowered prices to liquidate inventories.
Domestic ship breaking scrap was offered at BDT24,500-25,000/mt ex-yard.