Imported ferrous scrap prices in South Asia were flat to down on Tuesday from the prior day. The mismatch between bids and offers kept trades low. 

Pakistan, though was fairly active in the market as domestic finished steel prices in the country have started rising. Still, trades were limited ahead of the budget announcement which will offer clarity on the government’s stance towards infrastructure development among other things. Similarly, Bangladesh mills also await the budget announcement by their government. 

 

India 

Indian mills hesitated to book scrap as they continue to face a labour shortage. Additionally, construction activity also slows down during the monsoon season forecast to begin on Wednesday. 

The daily Davis Index for containerised shredded settled at $285/mt cfr Nhava Sheva, down by $3/mt. Sellers from the UK and Europe held offers at $285-290/mt cfr Nhava Sheva. But buyers were not keen for trades amid demand concerns.  

The Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $270/mt cfr Nhava Sheva, unchanged from Monday. The index for US-origin HMS 1&2 (80:20) rose by $2/mt to $270/mt cfr Nhava Sheva from Monday. A few trades for HMS 1&2 (80:20) were reported at $265-270/mt cfr Nhava Sheva, depending on the origin. Domestic scrap availability remains limited. 

Brazilian HMS 1&2 (80:20) was offered at $270-275/mt cfr Nhava Sheva and Mundra, with no buyers at those levels.  

A few traders were said to have exported billets to the Philippines and China at $400-405/mt cfr. Offers have now increased from these levels.  

Pakistan 

Domestic steel demand in the northern region recovered asdownstreamactivities gained momentum. Steelmakers expect the government to revise certain taxes in the budget announcement scheduled on June 12, which could aid the country’s steel industry in the coming days. 

Pakistan buyers booked containerised ferrous scrap, but in limited quantities. 

The daily Davis Index for US-origin containerized shredded settled at $291/mt cfr Port Qasim, down by $1/mt. Trades for US-origin shredded were heard in the range of $285-290/mt cfr Port Qasim. Suppliers from the UK and Europe, however, offered material at $290-295/mt cfr Port Qasim with very limited buyers at those levels.

 

The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $270/mt cfr Qasim, down by $1/mt from Monday. Bids dropped compared to last week and no trades were reported. The index for US-origin HMS 1&2 (80:20) was at $275/mt cfr Qasim, unchanged from the prior week. Offers were at $275-280/mt cfr Qasim on Tuesday. 

Suppliers from South Africa continued to face export permit issues and no fresh offers were reported on Tuesday. 

Bangladesh 

Inquiries from major Bangladesh steel mills were very few. Vessels carrying their bulk consignments have only recently made to the country’s port. These bookings were made in March- April. Still, trades are likely to rise in the coming week. Mainly on the back of the upcoming budget announcement could offer clarity on the government stimulus to soothe the economic distress. 

The daily Davis Index for containerised shredded settled at $300/mt cfr Chattogram, down by $1/mt. Offers for shredded were flat in the range of $305-310/mt with bids lower than $295/mt cfr Chattogram.  

The index for Latin America-origin HMS 1&2 (80:20) was at $275/mt cfr Chattogram, unchanged from Monday. Offers from Brazilian traders increased due to rising demand in their home country.  

The index for US-origin HMS 1&2 (80:20) settled at $285/mt cfr Chattogram, unchanged from Monday. Trades of UK-origin new tin plate cutting bundles were heard at $310/mt cfr Chattogram. 

 

East Asia 

Taiwan

Imported ferrous scrap prices in Taiwan inched up on Tuesday by $3/mt with the index for US HMS 1&2 (80:20) settling at $244/mt cfr Taiwan. Offers for US-origin HMS 1&2 (80:20) rose to $245-250/mt cfr Taiwan on Tuesday. The rise in offers was driven by an increase in Turkish ferrous scrap import prices. But weak finished steel demand kept trades low. 

Offers for Australian-origin HMS 1&2 (80:20) were at $245/mt cfr Taiwan. Buyers preferred lower-priced South American cargo.

In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $260-265/mt cfr Taiwan, up by $5-10/mt from Friday. Buyers are exploring import offers from other supplier countries to reduce raw material cost.

 

 

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