Imported containerised shredded scrap offers to South Asia jumped up on Monday amid tight supply. Buyers in Bangladesh chased the materials fearing a further rise in prices. However, Pakistani mills paused trade amid falling domestic scrap prices.
Bangladesh
The daily Davis Index for containerized shredded, Monday, settled at $333.75/mt cfr Chattogram up by $2.32/mt from Friday. New offers were at $340/mt cfr Chattogram on Monday amid a scarce supply of shredded. A few trades by Dhaka-based mills were reported at $330-335/mt cfr Chattogram. P&S scrap traded at $335-340/mt cfr Chattogram from South America and the UK.
The index for containerized US-origin HMS 1&2 (80:20), Monday, settled at $321.67/mt cfr Chattogram, up $1.67/mt from Friday. Trades for the UK and US-origin HMS 1&2 (80:20) reported at $320-323/mt cfr Chattogram.
In the bulk market, deals from US west coast suppliers were heard at $330/mt cfr Chattogram, however, no confirmation was received till the time of publication. Some traders opined that it could be a rumour as buyers have enough inventories in hand.
The daily index for Latin America-origin HMS 1&2 (80:20) settled at $315/mt cfr Chattogram, up $1/mt from Friday. South American yards sold HMS #1 at $320-322/mt cfr Chattogram. While buying interest was still around $315/mt cfr Chattogram.
Domestic steel demand in Bangladesh is yet to return to pre-COVID-19 levels, but end-user demand has started picking up. Major steelmakers in Chattogram offered billets at BDT41,000-41,500/mt ($483-489/mt)ex-works Chattogram. Large steel producers like BSRM and AKS are offering rebar at BDT56,000-57,000/mt and BDT55,000/mt ex-works, respectively, with the index settling at BDT55,750/mt ex-works.
Dhaka-based finished steel producers sold rebars at BDT49,000/mt ex-works, at prices up by BDT500-1,000/mt from the prior week.
Domestic shipbreaking scrap equivalent to P&S traded at BDT31,500/mt ex-yard Chattogram, down by BDT500/mt. HMS 1&2 (80:20) was priced at BDT29,000-29,500/mt ex-yard Chattogram.
Pakistan
A gradual resumption in mega infrastructure projects is likely to improve steel demand in the country. Trading on Monday was supported by indications of a firm scrap market in November.
The daily Davis Index for containerized shredded, Monday, rose further by $0.45/mt to settle at $325.45/mt cfr Port Qasim. Trades for UK-origin shredded in containers were heard at $325-326/mt cfr Port Qasim. Most offers from EU/UK-origin were around $327-328/mt cfr Port Qasim on Monday following strengthening global cues.
Containers of Dubai-origin #1 HMS traded at $313-315/mt cfr Port Qasim. The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $311/mt cfr Port Qasim, unchanged from Wednesday. Mills chose to buy shredded over HMS scrap this week. The index for US-origin HMS 1&2 (80:20) settled at $313.5/mt cfr Port Qasim, up by $2.36/mt from Friday. Offers from South American ferrous scrap suppliers were at $310/mt cfr Qasim.
In the domestic market, Bala billet prices recovered to PKR90,000-90,500/mt ($562-565/mt) ex-works Punjab amid recovering demand. Leading Karachi-based producers offered rebar at PKR109,000-110,000/mt ex-works, offering a discount upto PKR1,000/mt to encourage buyers. In Punjab, G-60 rebar prices sold at PKR108,500-109,000/mt ex-works, down by PKR500-1,000/mt from the prior week.
In Lahore, the local government could ask some secondary steel mills, especially those without emission control machinery, to pause production for a few weeks due to heavy smog. This dip in production could impact domestic ferrous scrap prices. Domestic Pure Q toke scrap, equivalent to shredded sold at PKR68,000-68,500/mt del Lahore mill, down PKR500/mt from the last week.
($1= PKR160.41; BDT84.93)