Asian imported ferrous scrap prices continued to rise despite subdued demand. Suppliers refused to lower offers for buyers in Taiwan, Pakistan, Bangladesh and India on supply crunch and expectations of stronger US domestic market in the coming days.
In India, the daily Davis Index for containerised shredded moved up by $2/mt by to $260/mt cfr Nhava Sheva on Tuesday. Shredded in containers was offered at $260-265/mt cfr Nhava Sheva with no takers. Offers from UAE origin suppliers were at $245-250/mt cfr Nhava Sheva.
India’s major ferrous scrap import market, Gujarat, falls under a red zone, where stringent lockdown restrictions continue. Additionally, furnaces remained shut amid demand concerns. People have returned to their hometowns which has led to a shortage of workforce.
Thin trades for HMS scrap in South India and Mundra with mills resuming sales of semi-finished and finished steel in a few domestic markets. Brazil and UK-origin HMS 1&2 (80:20) traded at $245-250/mt cfr Chennai and $240/mt cfr Mundra.
In Pakistan, the daily Davis Index for containerised shredded settled at $268/mt cfr Port Qasim on Monday, up by $7/mt. The daily Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $254/mt cfr Qasim, up by $5/mt. UAE suppliers offered HMS1&2 (80:20) at $250-255/mt cfr Qasim. Offers for #1 HMS and P&S mix were at $260-265/mt cfr Qasim with no takers. UK-origin shredded traded at $275/mt cfr Qasim on Monday.
In Bangladesh, the daily Davis Index for containerised shredded settled at $273/mt cfr Chattogram up by $3/mt. Mills refrained from booking more cargoes amid weakened finish steel demand in the country. Trades for shredded were reported at $270-275/mt cfr Chattogram. Offers then rose to $275-280/mt cfr Chattogram driven by a rise in imported scrap prices in Turkey.
Steelmakers are staring at losses with domestic steel prices coming under pressure. Mills were distressed to sell as inventories continued to pile up.
The daily index for Latin America-origin HMS 1&2 (80:20) settled at $255/mt cfr Chattogram, up by $4/mt. Trades were reported at the index price. The index for US-origin HMS 1&2 (80:20) settled at $263/mt cfr Chattogram, up from $260/mt cfr Chattogram on Monday. Bids continued to be lower at $255/mt cfr Chattogram.
In Taiwan, the daily Davis Index for containerised HMS 1&2 (80:20) settled at $227/mt cfr Taiwan on Tuesday, up by $1/mt. US-origin scrap suppliers continued to offer HMS 1&2 (80:20) at $230-235/mt cfr Taiwan following a rise global ferrous scrap prices. On Monday, Feng Hsin steel rolled over domestic scrap purchase and rebar supply prices.