Imported ferrous scrap enquiries in Pakistan and Bangladesh have started picking up with Eid holidays coming to an end. On Monday, traders were back in the market but many stayed away from purchasing due to increased offers. Trades are expected to pick up this week in India with the lockdown restrictions relaxed further.
Imported scrap trades gained momentum this week. Though, steel mills continue to face a shortage of workforce due to rising cases of COVID-19 in the country.
A rise in global iron ore prices is expected to push domestic sponge iron upwards. This could give ferrous scrap trades a lift. Enquiries are on a rise and traders were willing to take positions for new shipments.
The Davis Index for containerised shredded settled at $280/mt cfr Nhava Sheva, unchanged from Friday. US and UK suppliers offered containerised shredded at $280-285/mt cfr Nhava Sheva with buyers hesitant to accept these offers.
The Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $260/mt cfr Nhava Sheva, unchanged from Friday. The index for US-origin HMS 1&2 (80:20) on Monday was at $256/mt cfr Nhava Sheva, up by $1/mt.
Indian buyers are likely to keep buying imported scrap containers for the next couple of weeks. But trades could remain limited ahead of the monsoon season in mid-June when construction activities slowdown.
Major steelmakers in Bangladesh have resumed operations but activities are yet to gain momentum. But traders hope for economic activities to increase this week onwards.
The Davis Index for containerised shredded settled at $287/mt cfr Chattogram, unchanged from Friday. Offers for shredded were in the range of $290-295/mt cfr Chattogram with bids at $280-285/mt cfr Chattogram in the market.
The index for Latin America-origin HMS 1&2 (80:20) settled at $258/mt cfr Chattogram, unchanged from Friday. Brazilian traders raised offers with demand in India picking up. The index for US-origin HMS 1&2 (80:20) settled at $266/mt cfr Chattogram, up by $1/mt from Friday.
The Davis Index for US-origin containerized shredded settled at $283/mt cfr Port Qasim on Monday, unchanged from Friday. Offers from UK suppliers rose to $286-290/mt cfr Qasim. US-origin shredded was offered at $283-285/mt cfr Qasim. While offers from the UK and European suppliers rose to $285/mt cfr Qasim. Most yards raised offers amid anticipation of improved demand in the near term.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $263/mt cfr Qasim, flat on Monday.
The index for US-origin HMS 1&2 (80:20) was at $258/mt cfr Qasim, up by $3/mt from Friday. Domestic steel sales are slowly expected to pick up with resumption in construction activities and mega infrastructure projects.
Imported ferrous scrap prices in Taiwan were flat on Monday with no trades. The ongoing rains and weak finished steel sales kept trades low. Offers for containerised US-origin HMS 1&2 (80:20) were heard at $230-235/mt with the Davis Index settling flat at $230/mt cfr Taiwan from Friday.
A few traders increased offers for US-origin HMS1&2 (80:20) to $235-237/mt cfr Taiwan due to increased buying by Turkish mills. Taiwanese mills, thus, remained away from transactions. Small bulk offers from Japan were at $255/mt cfr Taiwan, up by $5-10/mt on a limited supply of ferrous scrap.
A leading steelmaker in South Taiwan, Feng Hsin steel kept its finished steel prices unchanged this week. The mill kept domestic scrap purchase prices flat at NT$6,800/mt del works. Prices for structural steel and deformed bars were flat at $656/mt ex-works and $488/mt ex-works, respectively.