Pakistani mills continued to be the preferred destination for ferrous scrap exports in South Asia, with the other two markets largely silent. There is a possibility of another round of freight hikes by major shipping lines globally in early August which could support the already firm prices.
The daily Davis Index for containerized shredded rose by $2.50/mt to $547.50/mt cfr Port Qasim on Wednesday. Most offers were firm at $545-550/mt cfr Qasim. Besides Pakistan, other subcontinental markets were silent for shredded.
Sellers from the UAE kept their offers firm. The daily Davis Index for UAE-origin HMS 1&2 (80:20) was at $505/mt cfr port Qasim, up by $2/mt. Expectations for UAE-origin mixed #1 HMS and P&S remained unchanged at $510-515/mt cfr Port Qasim.
The extended suspension on steel scrap exports from the UAE for another five months till December 14, 2021, is unlikely to impact supply, said a trader.
The daily index for US-origin HMS 1&2 (80:20) settled unchanged at $505/mt cfr Port Qasim on Wednesday.
Steel and ferrous scrap markets in Bangladesh continued to stay silent amid the two-week strict COVID-19 related nationwide lockdown till August 5. Most of the offices, industries and factories are either closed or operating with a limited workforce. Transportation of public and goods have been impacted amid movement restrictions.
The daily Davis Index for containerized shredded, Wednesday, settled up by $3/mt at $555/mt cfr Chattogram due to an increase in asking prices. Deals, however, were slow in a silent market.
The daily index for US-origin containerized HMS 1&2 (80:20) was flat at $529.5/mt cfr Chattogram. The indexes for Latin America-origin, UK-origin, and Australia-origin HMS 1&2 (80:20) settled at $515/mt, $517/mt, and $526/mt cfr Chattogram, respectively, also unchanged.
In the bulk market, offers were few, but mills were interested in HMS 1&2 (80:20) at $525-530/mt cfr Chattogram levels. Some mills placed inquiries for Japanese H2 bulk at a competitive price, with importers in Vietnam and Taiwan largely away.
Except for a few government construction projects, steel-consuming activities remain hit and could take at least mid-August to regularise.