Imported ferrous scrap prices in South Asian markets came under pressure as the disparity between bids and suppliers’ expectations increased. A few traders have started lowering their offers this week to boost trades.
Prolonged weak finished demand and a fall in domestic billet and rebar prices pulled bids from Indian mills down. Bangladeshi mills also were keen on lower offers for containerised scrap.
India
Although Indian steel mills have ramped up production, they continued to deal with weak finished steel sales. Domestic steel prices dropped by Rs500-700/mt ($8-10/mt) in the two days and weighed down ferrous scrap demand.
The daily Davis Index for containerised shredded settled at $282/mt cfr Nhava Sheva, down by $4/mt. Offers were at $285-290/mt cfr Nhava Sheva for material from the UK and Europe. Buyers countered with bids below $280/mt cfr Nhava Sheva on Wednesday.
The Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $270/mt cfr Nhava Sheva, down by $2/mt from Tuesday. Though a few sellers continued to export from the UAE, Indian buyers were wary of booking material as the UAE government has banned exports of ferrous scrap for four months.
Though the UAE is a major supplier country for India, scrap prices registered little or no impact of this decision. This mainly since the announcement timing coincided with the lockdown in India.
The index for US-origin HMS 1&2 (80:20) settled at $270/mt cfr Nhava Sheva, down by $3/mt from Tuesday. A few trades for UK and European-origin HMS 1&2 (80:20) concluded at $260/mt cfr Nhava Sheva. Brazilian and West African HMS 1&2 (80:20) traded at $250-255/mt cfr Nhava Sheva, down by $5-10/mt from the prior week. South African suppliers continued to face permit issues and refrained from doling out fresh offers.
Pakistan
Pakistan government has announced 20 days smart lockdown restricting few activities in Lahore to control COVID-19 spread. Transportation remains hampered yet again hitting imported ferrous scrap trades.
The Davis Index for US-origin containerized shredded settled at $288/mt cfr Port Qasim, down by $2/mt from Tuesday. Thin trades were reported at $288-290/mt cfr Qasim.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $271/mt cfr Qasim, down by $3/mt from Friday. A few trades were reported at the index price. There were limited sellers in the market due to an export ban imposed by the UAE government.
The index for US-origin HMS 1&2 (80:20) was at $275/mt cfr Qasim, down by $3/mt from Tuesday. Offers were at $280/mt cfr Qasim on Tuesday, with bids at $270/mt cfr Qasim.
Bangladesh
Bangladesh’s steel mills continued to hold bids for shredded scrap lower by $10/mt than offers. Many small-scale induction furnaces are still struggling with to secure raw materials like ferroalloys and DRI, imported primarily from India.
The daily Davis Index for containerised shredded settled at $298/mt cfr Chattogram, down $5/mt. Offers for shredded from the US, however, are at $305/mt cfr Chattogram. Sellers from Australia and New Zealand dropped their offers to $295-300/mt cfr Chattoram.
The index for Latin America-origin HMS 1&2 (80:20) inched down by $4/mt to $274/mt cfr Chattogram. Offers for Brazilian scrap were in the range of $280-285/mt cfr Chattogram, but trades were heard at $260-265/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $283/mt cfr Chattogram, down by $2/mt from Tuesday. Yards are offering the grade at $285-290/mt cfr Chattogram citing limited availability and firm global prices.
East Asia
Taiwan
Imported ferrous scrap prices in Taiwan were unchanged on Wednesday with the index for US HMS 1&2 (80:20) settling at $251/mt cfr Taiwan. Trades for HMS 1&2 (80:20) were reported at $252-255/mt cfr Taiwan but a few sellers are still offering the grade $3-5/mt higher than these levels. A deal for US-origin #1 HMS was reported at $257-258/mt cfr Taiwan.
Offers for Australian-origin HMS 1&2 (80:20) were at $245/mt cfr Taiwan.
($1= NTD29.65)