Imported ferrous scrap offers in the South Asian markets remained bullish amid expectations of further demand recovery in the coming days. End-user demand in Bangladesh and Pakistan has already started to pick up. 

 

Pakistan 

Importers have resumed trades since rains in the country have mellowed down and Muharram holidays have concluded. The market reopened on Tuesday and could take a few days for trades to gain momentum. Customers at present are assessing the international market before resorting to trades. 

 

The Davis Index for containerized shredded settled at $316/mt cfr Port Qasim, up by $1/ mt from Monday. Trades for Europe-origin shredded were reported at $312-313/mt cfr. Offers from UK yards on Tuesday for the grade reported at $320-325/mt cfr Port Qasim. Still, a yard was heard to have sold shredded at $315/ mt cfr Port Qasim. Bids for UK-origin shredded were at $313-315/mt cfr Qasim, but suppliers refused these levels. The Davis Index for UAE-origin HMS 1&2 (80:20) Tuesday settled at $301.88/mt cfr Port Qasim, unchanged from Monday. Trades for UAE-origin mixed #1 HMS and P&S scrap were at $305-310/mt cfr Port Qasim. 

 

The index for US-origin HMS 1&2 (80:20) settled at $303/mt cfr Port Qasim, up by $3/mt from Monday. In Gadani’s shipbreaking markets, trades remained slow. Offers for scrapped ships were heard at $350-360/ldt. A cash crunch and the depreciating Pakistani rupee have held back recyclers from risky deals. 

 

In the domestic market, steel prices were rangebound amid limited trades. Bala billet prices were at PKR90,500-91,000/mt ex-works Punjab. Shredded scrap Q toke was priced at PKR69,700-70,000/mt ex-works Lahore, up by PKR300/mt from Friday. Pakistani currency appreciated to PKR165.38 against US$1 from PKR168.3 last week. This could encourage Pakistan buyers to book import material. But domestic steel prices may lose steam in the coming days. 

 

A disparity between sellers and buyers’ prices has kept trades at bay said an indenter in Pakistan. Before booking more material, buyers are likely to focus on finished steel sales. A few mills are struggling with limited cash flow and found current price levels unviable. 

 

Bangladesh 

Bangladesh’s was receptive for scrap trades on Tuesday as most infrastructure projects in the country resumed construction work. The Davis Index for containerized shredded Tuesday settled at $326/mt cfr Chattogram, unchanged from Monday. Offers for shredded from UK yards were at $325-330/mt cfr Chattogram on Tuesday. Supplies from Chile, Australia and New Zealand were limited but a few trades for containerized shredded were reported at $315-325/mt cfr Qasim. The strengthening of domestic steel prices and resumption in construction projects has pushed mills to book more scrap cargoes. 

 

Offers from Indian sponge iron makers rose sharply from the prior weeks making it less viable for Bangladeshi furnaces-based steelmakers. Mills preferred domestic scrap to fulfil their requirements amid higher sponge iron prices. The index for Latin America-origin HMS 1&2 (80:20) settled at $306.75/mt cfr Chattogram, up by $1.75/mt from Monday. A few containers traded at $305-308/mt cfr Chattogram, up $2-3/mt from late last week. Trades for #1 HMS from South America concluded at $312-315/mt cfr Chattogram, refusing bids at $305-307/mt cfr Chattogram from small mills. 

 

The index for US-origin HMS 1&2 (80:20) settled at $311/mt cfr Chattogram, up by $1/mt from Monday. Sellers offered HMS 1&2 (80:20) in the range $310-312/mt cfr Chattogram, while buyers booked the grade at $308/mt cfr Chattogram. In the domestic market, billet traded at BDT41,500/mt ex-works for square billets sales. Large steel producers offered rebar at BDT56,000-57,000/mt ex-works, while a few offered discounts of BDT1,000/mt and sold them at BDT55,000/mt ex-works, said a steelmaker. 

 

In shipbreaking markets, a few trades for scrapped containers and tankers reported at $10/ldt higher than the prior week. Domestic shipbreaking scrap equivalent to P&S traded at BDT30,500/mt ($359.6/mt) delivered mill on Tuesday.

 

($1= PKR165.38; BDT84.77)

 

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