Imported containerized ferrous scrap prices in South Asia were largely flat to up as most buyers preferred to be in a wait-and-watch mode. Buyers are waiting for clarity on the global price direction. Some market participants believe prices are likely to remain firm in the coming weeks amid strengthening international iron ore prices and Chinese billet prices hitting a six-month high.
Bangladeshi steel mills have resumed bulk cargo inquiries and bookings for September shipments. Demand for steel is expected spur in the last quarter of 2020.
Two bulk cargo bookings were reported last week with the latest on Friday consisting of 32,000mt mixed scrap from the US west coast. It comprised 8,000mt of HMS 1&2 (80:20) at $307.5/mt, 17,000mt shredded at $312.5/mt and 7,000mt busheling at $322.5/mt cfr Chattogram. For an equivalent amount of HMS 1&2 (80:20), prices have increased by $12.5/mt from the prior deal reported at $295/mt cfr Chattogram late July.
The Davis Index for containerized shredded was at $317/mt cfr Chattogram, up by $0.93/mt from Friday. Offers for shredded from leading UK yards were, however, above $320/mt cfr Chattogram on Monday. Most steel mills in Dhaka though remained away from trades at these price levels and looked for lower-priced shredded from other origins.
The index for Latin America-origin HMS 1&2 (80:20) settled at $297.86/mt cfr Chattogram, up by $0.36/mt on Friday. Offers for #1 HMS from Brazil, Chile, and Europe were at $305/mt cfr Chattogram, with bids at $295/mt cfr Chattogram from small scale furnaces,
The index for US-origin HMS 1&2 (80:20), Friday, was at $304/mt cfr Chattogram, up by $0.07/mt from Friday. Yards kept offers for HMS 1&2 (80:20) above $305-308/mt cfr Chattogram, still trades reported at $303-305/mt cfr Chattogram.
It was business as usual in Pakistan and most ferrous scrap importers were back in the ferrous scrap market after Eid lull last week. Finished steel prices in the country were firm fueled by increased imported scrap prices. Pakistani currency depreciated to PKR168.5 from 166.6 levels on August 4
The Davis Index for containerized shredded settled, Monday, settled at $313.79/mt cfr Port Qasim, up by $0.46/mt from Friday. Trades for the US and Europe-origin shredded were at $308-312/mt cfr Port Qasim. Offers by UK suppliers for the grade were at $314-315/mt cfr Port Qasim as they expect bookings to increase in the coming days.
Most stalled infrastructure projects are expected to resume operation soon. Additionally, the government has also announced new projects in the China-Pakistan corridor which have instilled optimism amid global trade tensions.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $300/mt cfr Port Qasim, up by $0.5/mt from Friday. Trades for UAE-origin mixed #1 HMS and P&S were at $300-305/mt cfr Port Qasim.
The index for US-origin HMS 1&2 (80:20) settled at $295/mt cfr Port Qasim, unchanged from Friday. Most US yards, however, were targeting for prices above $300/mt cfr Port Qasim.
Indian domestic steel prices moved up further driven by a rise in global steel prices. Offers for imported ferrous scrap in India too maintained their upward graph driven by bullish steel prices. Limited availability of material with mills and traders are likely to keep demand strong.
The Indian currency appreciated on Monday to Rs74.9 against US$ 1 from around Rs75.5 levels last week which further supported importers.
The Davis Index for containerized shredded settled at $311.5/mt cfr Nhava Sheva, up by $1.39/mt from Friday. Very few offers for UK/ European-origin containerized shredded were at $312-315/mt cfr Nhava Sheva on Monday.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $292.86/mt cfr Nhava Sheva, up by $0.36/mt from Friday. UAE suppliers returned to the market after Eid holidays and kept their offers firm citing higher bids from Pakistani buyers.
A few trades for Brazilian and Australian HMS 1&2 (80:20) concluded at $290-295/mt cfr Mundra and Nhava Sheva. In the domestic market, finished steel prices moved up by Rs1,000-1,200/mt from last week.
Offers for US-origin HMS 1&2 (80:20) were at $293-295/mt cfr Nhava Sheva on Monday. The index for US-origin HMS 1&2 (80:20) settled at $291.5/mt cfr Nhava Sheva, up by $1.5/mt from Friday. Few mills raised their bids by $3-5/mt from late last week levels to procure containers.
Market update: Taiwan
US-origin containerized HMS 1&2 (80:20) was offered unchanged at $257-260/mt cfr Taiwan. The Davis Index for containerized US-origin HMS 1&2 (80:20) settled flat at $255/mt cfr Taiwan in absence trades. In the domestic market also ferrous scrap prices remained unchanged. Many mills cancelled discounts on rebar sales as they tried to pass on input costs to end buyers.