Imported ferrous scrap prices in South Asia remained flat on Thursday. Pakistani importers continued to book containers at stable prices, however, mills in India and Bangladesh lowered bids as they found imported scrap prices less viable amid weak domestic demand. Market participants await trends from August shipments prices in Turkey to gauge the price direction.
The Davis Index for containerized shredded Thursday settled at $277.90/mt cfr India subcontinent unchanged from Wednesday.
The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $256.35/mt cfr India subcontinent, down by $1.45/mt from Wednesday. Drop in bids from Indian mills pulled the index down on Thursday.
India
Imported ferrous scrap market in India remained silent with no major activities, except in Gujarat and Goa. A few mills resumed enquiries for HMS scrap this week but their price expectations turned out to be far below current market levels.
The daily Davis Index for containerized shredded settled at $273/mt cfr Nhava Sheva, unchanged from Wednesday. Offers for US-origin HMS 1 &2 (80:20) moved up to $275-280/mt cfr Nhava Sheva with importers in Pakistan buying at higher prices but Indian buyers were not keen on dealing at these levels.
The Davis Index for HMS 1&2 (80:20) UAE-origin settled at $252/mt cfr Nhava Sheva, down by $3/mt from Wednesday. US and European yards expect the ban on scrap exports from South Africa and UAE to support prices in other markets. Soon Indian mills are likely to book more scrap from the US and EU as their inventories deplete and supply of domestic scrap tightens.
Suppliers are offering the grade at $255-265/mt cfr Nhava Sheva while buyers seek $240-245/mt cfr Nhava Sheva levels. The index for US-origin HMS 1&2 (80:20) settled at $253/mt cfr Nhava Sheva, down by $2/mt from Wednesday. A few trades for the grade in containers closed at $250-255/mt cfr Nhava Sheva while most bids lagged at $240/mt cfr Nhava Sheva on Thursday.
Bangladesh
Bangladeshi steelmakers shied away from imported scrap booking amid domestic uncertainty and easier availability of scrap from recycling yards.
A major steelmaker booked a small bulk cargo from Japan comprising 10,000mt of Busheling at $285-290/mt cfr Chattogram, informed a trader.
Domestic ship breaking scrap offer remained competitive at BDT26,000-26,500/mt ex-yards compared to imported scrap. Finished steel demand in Bangladesh, however, remained subdued amid heavy rains.
The Davis Index for US-origin containerized shredded settled at $285/mt cfr Chattogram, unchanged from Wednesday. Offers from Europe and UK yards were at $290-295/mt cfr Chattogram, while buyers had the option of lowered priced shredded scrap from other Australia and New Zealand offered at $280-285/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) remained flat at $260/mt cfr Chattogram from Wednesday. Offers for #1 HMS from Brazil, Chile, and Europe were at $265-270/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $268/mt cfr Chattogram, down by $2/mt from Wednesday. Steel mills are bidding at $260-265/mt cfr Chattogram refusing to negotiate at higher prices.
Pakistan
The Davis Index for US-origin containerized shredded settled at $283/mt cfr Port Qasim, unchanged from Wednesday.
Trades for US-origin shredded were at $280-283/mt cfr Qasim. Offers, mostly, from the UK and European suppliers were at $285/mt cfr Qasim. Few trades were confirmed at $284-285/mt cfr Qasim on Thursday.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $263/mt cfr Qasim, unchanged from Wednesday. Trades for UAE-origin HMS 1&2 (80:20) were in the range $265-270/mt cfr Qasim. The index for US-origin HMS 1&2 (80:20) was at $258/mt cfr Qasim, down by $2/mt from Wednesday.
Few buyers bids for US-origin HMS 1&2 (80:20) at $255/mt cfr Qasim but suppliers held on to their offers as they eye resumption of bulk bookings by Turkish mills for August shipments.
The commercial Bala billet dropped Thursday to PKR92,800-93,000/mt ex-yards Lahore, inclusive of local taxes, from the prior week. Trades for domestic mixed HMS and P&S scrap were at PKR72,500-73,000/mt delivered Lahore mill, stable from the prior day.
($1=Rs75;BDT84.79;PKR167.24)