Imported ferrous scrap prices in South Asia continued to rise as demand has started to pick up.
Turkish steel mills continued booking ferrous scrap cargoes late last week, driving sellers to raise offers for South Asian buyers.
A rise in offers was also the outcome of Southeast Asian importers buying billets at higher prices, mainly from India.
Japanese ferrous scrap export prices were also bullish on the back of the Covid-19-driven supply crunch.
Indian imported ferrous scrap prices inched up following global cues.
Importers have started booking shredded after three months.
Containers piled up at ports, again because of the Covid-19 lockdowns, have now been completely cleared.
Domestic scrap shortage also impacted offers for imported ferrous scrap.
Mills stayed away from trades as they continue to face labour shortages. Additionally, construction activity will now also slow down during the monsoon season, forecast to begin on June 10.
The Davis Index for containerised shredded settled at $288/mt cfr Nhava Sheva, up by $3/mt from the Friday. Shredded in containers was offered at $288-295/mt cfr Nhava Sheva. A few trades were reported at the index price, though some buyers are still bidding $10/mt lower than these levels.
The Davis Index for UAE-origin containerised HMS 1&2 (80:20) settled at $270/mt cfr Nhava Sheva, up by $5/mt from Friday.
The index for US-origin HMS 1&2 (80:20) was at $268/mt cfr Nhava Sheva, up by $3/mt.
Trades for HMS 1&2 (80:20) were reported at $265-270/mt cfr Nhava Sheva, depending on origins.
Brazilian HMS 1&2 (80:20) traded at $270/mt cfr Chennai late last week. Offers then rose to $275/mt cfr on Monday.
Mills continued to book containerised scrap on Monday. The Davis Index for US-origin containerised shredded settled at $292/mt cfr Port Qasim, up by $2/mt from Friday.
Trades for shredded were heard in the range of $288-290/mt cfr Qasim. Suppliers, however, expect prices to rise further in the coming days.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $270/mt cfr Qasim, up by $5/mt from Friday.
HMS 1&2 (80:20) of South African-origin traded at $265-270/mt cfr Qasim, up by $5/mt from the prior week.
The index for US-origin HMS 1&2 (80:20) was at $268/mt cfr Qasim. Offers were at $270-280/mt cfr Qasim on Monday.
Steelmakers expect the government to revise certain taxes which could aid the country’s steel industry in the coming days.
Trades in Bangladesh are likely to increase this week as the upcoming budget announcement could offer clarity on the government stimulus, which could soothe the economic distress.
The Davis Index for containerised shredded settled at $301/mt cfr Chattogram, up by $3/mt from Friday.
Offers for shredded were in the range of $305-310/mt with bids at $295-300/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) moved up by $5/mt to $270/mt cfr Chattogram. Offers from Brazilian traders rose due to increased inquiries by Indian mills.
The index for US-origin HMS 1&2 (80:20) settled at $285/mt cfr Chattogram on Monday, up by $5/mt from Friday, mainly on the back of a rise in offers.
Trades of UK-origin new tin plate cutting bundles were heard at $310/mt cfr Chattogram. P&S scrap traded at $300-305/mt cfr Chattogram.
Imported ferrous scrap prices in Taiwan rose on Monday by $3/mt with the index for US-origin HMS 1&2 (80:20) settling at $241/mt cfr Taiwan.
Offers for the grade were at $243-245/mt cfr Taiwan with no major trades heard.
The rise in offers was driven by an increase in Turkish ferrous scrap import prices, but weak finished steel sales kept trades low.
In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $260-265/mt cfr Taiwan, up by $10/mt from Friday.
In South Taiwan, Feng Hsin Steel’s domestic HMS 1&2 (80:20) purchase prices were at NT$7,100/mt delivered to the mill, an increase of NT$300/mt from a week ago.
Buyers are exploring import offers from other supplier countries to reduce raw material cost.