Imported ferrous scrap prices in South Asia remained bullish following global cues. Trades, however, were tepid as buyers were not keen on current price levels. Most buyers are expecting a correction in the coming days. Inquiries in Pakistan and Bangladesh slowed on Eid-al-Adha holidays starting Friday. 

 

The daily Davis Index for containerized shredded, Thursday, rose by $3.38/mt to settle at $300.58/mt cfr India subcontinent. The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $281.17/mt cfr India subcontinent, up by $2.4/mt. 

 

In Turkey, major steel mills continued to book cargoes at present price levels as suppliers refused lower offers. Another $3-5/mt rise is likely in the coming days as per the participants. 

 

The Davis Index for US-origin HMS 1&2 (80:20) on Wednesday settled at $275.15/mt cfr Turkey, up by $2.65/mt from a day ago and by around $8/mt from a week earlier. Prices have reached a five-month high.  

 

Pakistan

Pakistani ferrous scrap importers slowed purchases as the country gears for Eid-al-Adha holidays. A few buyers still raised their bids as their inventories depleted. Bookings will pick up on Tuesday for more bookings after Eid holidays. 

 

The Davis Index for containerized shredded settled, Thursday, at $304.00/mt cfr Port Qasim, up by $3.75/mt from Wednesday. Trades for US-origin shredded were at $302-304/mt cfr Qasim and $305/mt cfr Qasim for UK-origin material. Offers for the grade on were in the range of $305-308/mt cfr Qasim. 

 

Late Wednesday, shredded in containers from Europe traded at $300/mt cfr Qasim. The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $295/mt cfr Qasim, up by $3.86/mt from Wednesday. Trades for UAE-origin HMS 1&2 (80:20) were reported at $293-295/mt cfr Qasim while #1 HMS was offered at $300-305/mt cfr Qasim. 

 

The daily index for US-origin HMS 1&2 (80:20) settled at $285/mt cfr Qasim, Thursday, up by $2.14/mt. Trades for US-origin HMS 1&2 (80:20) were reported at $285/mt cfr Qasim but a few offers were even at $290/mt cfr Qasim.   

 

In the domestic market, steel prices remained unchanged ahead of Eid holidays and month-end book closures. Bala billets were priced at PKR92,000/mt ex-works Lahore, inclusive of local taxes. Domestic mixed HMS and P&S scrap sold at PKR72,500/mt delivered Lahore mill.

 

India 

Indian imported ferrous scrap prices trended up, however, buyers backed-off on a sudden rise in global scrap prices. Mills are expected to stay away from scrap buying to have more clarity on the global prices post Eid holidays, said importers.

 

The daily Davis Index for containerized shredded Tuesday settled at $298/mt cfr Nhava Sheva, up by $3/mt from the prior day. Offers for US-origin containerized shredded were at $298-305/mt cfr Nhava Sheva against bids of $290-295/mt cfr Nhava Sheva depending on origins. Very few suppliers were active as most held materials for better prices.

 

The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $283.5/mt cfr Nhava Sheva, up by $3.5/mt from Wednesday. UAE suppliers have stopped loading amid Eid holidays. The expected shortage of domestic scrap could lead to more imports in the next few days. 

 

A few trades for Brazilian and Australian-origin HMS 1&2 (80:20) closed at $275/mt cfr Mundra and Nhava Sheva. UK-origin materials traded at $265-270/mt cfr Qasim. 

 

The daily index for US-origin HMS 1&2 (80:20) settled at $278.64/mt cfr Nhava Sheva, up by $3.22/mt from Wednesday. Suppliers on Thursday were not ready to accept bids below $278-280/mt cfr Nhava Sheva. 

 

Bangladesh 

Bangladesh’s domestic steel demand remained poor challenged by heavy rains and floods. The market has come to a standstill amid successively rising offers despite weak domestic demand. No bulk enquirers were heard. Suppliers also pulled-off offers to Bangladesh amid aggressive Turkish bookings. 

 

Prices for domestic billet and rebar remained subdued. Billets offers stayed flat at BDT38,000-39,000/mt ex-works while rebar offers from large steelmakers were higher than buyers’ expectations at BDT55,000-56,000/mt ex-mills as they need to pass high input costs to the end consumers. 

 

Domestic scrap prices in the country recovered amid rising demand and higher imported scrap prices as well as a hike in scrapped ships prices this week. Domestic shipbreaking scrap was offered at BDT27,000/mt ex-yards Chattogram on Thursday, up from BDT25,000/mt last week. 

 

Indian sponge iron offers to Bangladeshi mills rose to $265-270/mt cfr Chattogram in line with rising domestic scrap prices. 

 

The Davis Index for containerized shredded settled at $306/mt cfr Chattogram, up by $0.13mt from Tuesday. Offers for shredded from leading UK yards remained at $305-310/mt cfr Chattogram, but buyers refused higher offers. No major deal in containers concluded on Thursday. 

 

The index for Latin America-origin HMS 1&2 (80:20) settled at $289.29/mt cfr Chattogram, up from $286.25/mt on Tuesday. Offers for #1 HMS from Brazil, Chile, and Europe were at $290-295/mt cfr Chattogram. Bangladeshi mills were still interested in $280/mt cfr Chattogram for the grade and no trades were heard. 

The index for US-origin HMS 1&2 (80:20) Tuesday settled at $295/mt cfr Chattogram, up by $1/mt cfr Chattogram on Thursday. Very limited trades were reported at the index price as most buyers found offers too high to close deals. 

 

($1=Rs74.77; PKR166.61; BDT84.65)

 

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