Imported ferrous scrap prices in South Asia continued to move up on Monday. Last week’s inquiries from Indian buyers have gradually started turning into bookings. Demand is expected to remain strong at least for the next few days.
Trades in Pakistan and Bangladesh could lose some momentum late in the week due to Eid al-Adha holidays.
The Davis Index for containerized shredded, Monday, settled at $287/mt cfr India subcontinent, up by $2.15/mt from $284.65/mt cfr on Friday.
The index for containerized US-origin HMS 1&2 (80:20) settled at $266.85/mt cfr India subcontinent, up by $2/mt from $264.85/mt cfr.
Pakistani mills continued to refill inventories. Albeit limited, continued demand for steel has given containerised ferrous scrap trades a push.
The Davis Index for US-origin containerized shredded settled at $291/mt cfr Port Qasim Monday, up by $2/mt from Friday. Trades for US-origin shredded were at $287-290/mt cfr Qasim. A few supplier yards in UK/Europe continued to offer shredded at $292-295/mt cfr Qasim.
Pakistan mills are still paying $10/mt higher than their Indian counterparts.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $282/mt cfr Qasim, up by $4/mt from Friday. There were only a handful of suppliers offering UAE material in the market. Trades for UAE-origin HMS 1&2 (80:20) were at $280-285/mt cfr Qasim. While offers for a mix of #1 HMS and P&S were above $290/mt cfr Qasim on Monday.
The index for US-origin HMS 1&2 (80:20) was at $268/mt cfr Qasim, up by $2/mt from Friday. Trades for US origin HMS 1&2 (80:20) reported at $265-270/mt cfr Qasim.
A few importers preferred booking HMS over shredded due to the widened price gap of around $20/mt from the usual $10-15/mt. Steelmakers are looking to blend imported material with lower-priced domestic alternatives like sponge iron.
The index for containerized shredded, Monday, settled at $283/mt cfr Nhava Sheva, up by $3/mt from last Friday. Offers for US-origin containerised shredded are at $287-290/mt cfr Nhava Sheva on Monday, with no supplier ready to sell below $285/mt cfr Nhava Sheva. Demand in India is improving with a rise in daily output in small-scale furnaces, inform traders. The anticipation of shortage in the coming months has spurred inquiries for September deliveries.
The Davis Index for HMS 1&2 (80:20) from the UAE settled at $263/mt cfr Nhava Sheva, up by $3/mt from Friday. Mills, however, refrained from bidding for UAE and US-origin HMS 1&2 (80:20) above $255-260/mt cfr Nhava Sheva.
A few containers of Brazilian HMS 1&2 (80:20) traded at $260/mt cfr Mundra and Nhava Sheva on Monday.
The index for US-origin HMS 1&2 (80:20) settled at $265/mt cfr Nhava Sheva, up by $2/mt from Friday. Suppliers offered the grade at $265-270/mt cfr Nhava Sheva on Monday amid limited availability. This, despite scrap generation rate rising significantly over the last few weeks.
Bangladesh steelmakers bought bulk cargoes ahead of Eid holidays.
The Davis Index for US-origin containerized shredded settled at $297/mt cfr Chattogram, up by $2/mt from Tuesday. Offers from Europe and UK yards inched were at $300/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) settled at $278/mt cfr Chattogram, up by $3/mt from Friday. Offers for #1 HMS from Brazil, Chile, and Europe were at $285-290/mt cfr Chattogram however, trades were reported at prices not more than $280/mt cfr Chattogram.
Sellers from Australia and New Zealand offered shredded at $285/mt cfr Chattogram and #1 HMS traded at $278-280/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $285/mt cfr Chattogram, up by $2/mt from Friday. Trades were reported in the range of $280-285/mt cfr Chattogram. On Monday, a few yards raised their offers to $290/mt cfr Chattogram.
Imported ferrous scrap prices rose on Monday by $2/mt on bullish global cues. Continued demand in Turkey and Pakistan last week, along with increased inquiries from Indian buyers since late last week have supported prices.
The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $242/mt cfr Taiwan. After a rise in US-origin HMS 1&2 (80:20) prices into Turkey last week, markets remained firm on Friday with the index for the grade settling on the prior Friday at $260/mt cfr. The index though down $0.05/mt from a day earlier rose by $4/mt from the Monday prior.
Few deals were heard at $240-242/mt cfr for US-origin HMS 1&2 (80:20) with offers at $245-247 cfr.
The Taiwanese government has allocated a budget of TWD420bn for infrastructure to boost domestic steel demand in addition to the TWD200bn bailout package to help the economy get on track. A boost in demand for finished steel could have a ripple effect on ferrous scrap trades.
In small bulk markets, bids for Japanese HMS 1&2 (50:50) were at $255-260/mt cfr, up by $5/mt from late last week. Japanese exporters are expecting ferrous scrap prices to rise further, as a leading trader offered the grade at $262/mt cfr Taiwan in small bulk cargoes.
($1=Rs74.77; BDT84.71; PKR167.58; TWD29.49)