Imported ferrous scrap prices in South Asia continued to rise on Wednesday. Turkish mills have resumed bulk ferrous scrap cargo bookings which raised offers in most global markets. In Pakistan and Bangladesh, demand is on a path to recovery. But in India, finished steel demand is still under pressure keeping importers away from the present offers.
The daily Davis Index for containerized shredded, Wednesday, settled at $283.20/mt cfr India subcontinent, up by $0.75/mt from $282.45/mt cfr.
The daily Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $260.95/mt cfr India subcontinent, up by $3/mt from $257.95/mt cfr. Bids for US-origin HMS 1&2 (80:20) were in the range of $255-258/mt cfr Qasim.
In Turkey, August shipments trades for ferrous scrap were reported at increased prices, and the Davis Index for US-origin HMS 1&2 (80:20) on Tuesday settled at $258.17/mt cfr Turkey, up by $1.92/mt from a day earlier and up by $5.23/mt from the prior week.
Pakistani mills continued to book containers to refill their inventories. Although limited, continued demand for steel has given ferrous scrap trades an impetus.
The Davis Index for US-origin containerized shredded settled at $288/mt cfr Port Qasim Wednesday, up by $1/mt from Tuesday. Trades for US-origin shredded were at $285/mt cfr Qasim. A few supplier yards in UK/Europe continued to offer shredded at $290-292/mt cfr Qasim.
Pakistan mills are bidding $10/mt higher than their Indian counterparts. Buyers were in a position to bid higher than other South Asian markets due to the government’s decision to lower duties on ferrous scrap announced during the budget in June.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $273/mt cfr Qasim, up by $7/mt from Tuesday. There were only a handful of suppliers offering UAE material in the market. Trades for UAE-origin HMS 1&2 (80:20) were at $270-275/mt cfr Qasim. While offers for a mix of #1 HMS and P&S were at $280/mt cfr Qasim on Wednesday.
The index for US-origin HMS 1&2 (80:20) was at $263/mt cfr Qasim, up by $3/mt from Tuesday.
Prices for commercial Bala billet were flat on Wednesday at PKR93,500-93,800/mt ex-yards Lahore, inclusive of local taxes. Trades for domestic mixed HMS and P&S scrap were at PKR73,500/mt delivered Lahore mill.
Indian mills were unwilling to match current offer levels. Domestic ferrous though limited in supply was priced lower than imported scrap. Even after factoring a rise in domestic scrap prices, it is likely to remain competitive over imported material in the present market dynamics.
The daily Davis Index for containerized shredded settled unchanged at $278/mt cfr Nhava Sheva. Offers for US-origin shredded are in the range of $285/mt cfr Nhava Sheva. Traders informed Davis Index, trades are current bid levels by mills are close to impossible as supply is scarce.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $255/mt cfr Nhava Sheva, unchanged from Tuesday. Indian mills refrained from bidding for UAE and US-origin HMS 1&2 (80:20) above $250/mt cfr Nhava Sheva.
US and European yards expect the ban on scrap exports from South Africa and UAE to support their prices. West African scrap in TEU traded at $240/mt cfr Mundra.
The index for US-origin HMS 1&2 (80:20) settled at $258/mt cfr Nhava Sheva, up by $3/mt from Tuesday. Suppliers are offering the grade at $260-265/mt cfr Nhava Sheva with buyers at $245-250/mt cfr Nhava Sheva levels.
Domestic ship breaking scrap offers remained competitive at BDT25,500-26,000/mt ex-yards amid increased availability.
The Davis Index for US-origin containerized shredded settled at $293/mt cfr Chattogram, up by $2/mt from Tuesday. Offers from Europe and UK yards inched up to $293-298/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) settled at $270/mt cfr Chattogram, up by $2/mt from Tuesday. Offers for #1 HMS from Brazil, Chile, and Europe were unchanged at $275-280/mt cfr Chattogram on Wednesday. South American suppliers raised offers after domestic steel prices in their home country increased.
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 $278/mt cfr Chattogram, up by $3/mt from a day prior, with trades reported in the range of $275-280/mt cfr Chattogram.
($1=Rs75.13; BDT84.77; PKR167.15)