Imported ferrous scrap prices in South Asia inched up on Tuesday. A disparity between offers and buyers’ expectations, however, remains.
The daily Davis Index for containerised shredded settled at $272.95/mt cfr India subcontinent, up by $1.25/mt from $271.7/mt cfr.
The Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $252.8/mt cfr India subcontinent, up by $1.15/mt from $251.65/mt on Monday.
Indian imported ferrous scrap prices were mixed on Tuesday. Global prices for ferrous scrap were not in sync and each country recorded a different trend based on local factors. Few mills ramped-up production this week and bought scrap to refill their inventories.
The daily Davis Index for containerised shredded settled at $273/mt cfr Nhava Sheva, up by $3/mt. Trades for Australian-origin scrap in containers were reported at $275/mt cfr Nhava Sheva. Most mills, however, were not keen on these levels as they struggle with finished steel demand.
Domestic scrap and sponge iron prices in some markets have gone up by Rs500-600/mt from Friday as some mills are looking to stock up inventories before monsoon season reaches its peak. Transportation becomes a hassle during the rainy season. Trades for imported scrap too are thus expected to rise in the coming days.
Offers for shredded were flat at $275-280/mt cfr Nhava Sheva from the US, UK and Europe. A few bids were reported at $265-270/mt cfr Nhava.
Brazilian and West African HMS 1&2 (80:20) in containers traded at $240-245/mt cfr Nhava Sheva, unchanged, on Tuesday.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $255/mt cfr Nhava Sheva, unchanged from Monday. Only a handful of buyers were interested in booking scrap from Dubai. Their bids were below $250/mt cfr Nhava Sheva.
The index for US-origin HMS 1&2 (80:20) was at $253/mt cfr Nhava Sheva, up by $3/mt from Monday. A few offers were at $250-255/mt cfr Nhava Sheva with bids below $250/mt cfr.
Bangladeshi steelmakers were waiting for prices to fall further before booking more scrap. Mills opted for lower-priced domestic ship-breaking over imported scrap. Domestic ferrous scrap was around BDT26,500-27,500/mt ex yards.
The Davis Index for US-origin containerised shredded settled at $277/mt cfr Chattogram, down by $1/mt from Monday. Offers from Australia and New Zealand were at $273-278/mt cfr Chattogram, with buyers at $270/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) inched down by $1/mt to $254/mt cfr Chattogram. Brazilian HMS 1&2 (80:20) traded in the range of $252-255/mt cfr Chattogram on Tuesday.
The index for US-origin HMS 1&2 (80:20) settled at $260/mt cfr Chattogram, down by $2/mt from Monday.
Pakistan ferrous scrap importers turned silent as they looked to close their accounting year. They are likely to take a wait-and-watch approach before booking more scrap.
In the domestic market, mills raised Bala billet prices to recover the input cost, which increased as currency depreciation made imported scrap costlier. Bala billet traded at PKR93,500-93,800/mt ex-Lahore plant on Tuesday, after rising by PKR500-800/mt on Monday from the prior week.
The Davis Index for US-origin containerized shredded settled at $276/mt cfr Port Qasim, unchanged from Monday. Trades for US-origin shredded were at $275-280/mt cfr Qasim, despite offers of $283-285/mt cfr Qasim from suppliers in the UK and Europe.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $260/mt cfr Qasim, down by $1/mt from Monday in absence of trades. A few trades for mixed HMS 1 and P&S were reported at $265/mt cfr Qasim with bids at $255-260/mt cfr.
The index for US-origin HMS 1&2 (80:20) was at $255/mt cfr Qasim, unchanged from Monday.
($1=Rs75.61; PKR167.62; BDT84.9)