Imported ferrous scrap offers in the South Asian markets maintained their uptrend amid expectation of further demand recovery in the coming days. Strong global markets added another $5/mt in offer prices. In the coming days, most suppliers are likely to dole out fresh offers.
Pakistani ferrous scrap importers have resumed bookings in keeping with rising production. It could take two days at the minimum for mills to assess the situation before resorting to trades. The international scrap market remains firm due to a scarcity of scrap.
The Davis Index for containerized shredded settled at $318/mt cfr Port Qasim, up by $2/mt from Tuesday. Trades for Europe-origin shredded were reported at $313-315/mt cfr while UK yards sold shredded at $318-320/mt cfr Port Qasim. Offers from UK yards for the grade were reported at $322-325/mt cfr Port Qasim. Most buyers could raise their bids to $320-322/mt cfr Port Qasim in the coming days.
The Pakistan Steel Melters Association (PSMA) has voiced its concerns about taxation issues the industry is facing. The body has urged the government to look into their concerns with utmost urgency. Melters operating in Federally Administered Tribal Areas (FATA) and Provincially Administered Tribal Areas (PATA) are absolved from taxes and renders PSMA furnaces uncompetitive.
The Davis Index for UAE-origin HMS 1&2 (80:20) settled at $304.07/mt cfr Port Qasim, up by $1.07/mt from Tuesday. Trades for UAE-origin mixed #1 HMS and P&S scrap were at $308-310/mt cfr Port Qasim on Wednesday. The index for US-origin HMS 1&2 (80:20) settled at $305/mt cfr Port Qasim, up by $2/mt from Tuesday and around $10/mt from the prior week following high offers in the market.
In the Gadani shipbreaking market, trades remained low. Offers for scrapped ships were heard at $350-360/ldt. A cash crunch and depreciating Pakistani currency held back recyclers from deals.
In the domestic market, steel prices were flat on limited trades. Domestic ferrous scrap prices although increased following high imported scrap offers. Bala billet prices were at PKR91,000/mt ex-works Punjab and shredded scrap Q toke at PKR70,000/mt ex-works Lahore, up by PKR300/mt from Friday.
Bangladesh’s imported scrap market is turning active gradually with a rising appetite for ferrous scrap. Most infrastructure projects have resumed and demand is expected to return to normalcy after mid-September, with mills returning to 100pc capacity utilization.
In the bulk market, the US-origin HMS 1&2 (80:20) was offered at $320-325/mt cfr Chattogram on Wednesday, while bids reported at $315/mt cfr Chattogram. Japanese suppliers offered small bulk cargoes of Busheling at $330/mt cfr Chattogram.
The Davis Index for containerized shredded settled at $325/mt cfr Chattogram, marginally down $1/mt from Tuesday. Offers for shredded from UK yards were at $325-330/mt cfr Chattogram on Wednesday. Supplies from Chile, Australia, and New Zealand were limited but a few trades for containerized shredded were reported at $315-325/mt cfr Chattogram. The strengthening of domestic steel prices and the resumption in construction projects has pushed mills to book more scrap.
Trades for containerized South African P&S scrap were at $325-328/mt cfr Chattogram.
Indian sponge iron offers have become less viable for Bangladeshi furnaces-based steelmakers who have switched to domestic scrap to fulfill their requirements.
The index for Latin America-origin HMS 1&2 (80:20) settled at $307.05/mt cfr Chattogram, up by $0.30/mt from Tuesday. A few containers traded at $305-308/mt cfr Chattogram, up by $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 scale furnaces.
The index for US-origin HMS 1&2 (80:20) was at $312/mt cfr Chattogram, up by $1/mt from Tuesday. Sellers offered HMS 1&2 (80:20) at $312-315/mt cfr Chattogram, while buyers booked the grade at $308-310/mt cfr Chattogram.
In the domestic market, square billets traded at BDT41,500/mt ex-works. 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 the shipbreaking market, 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= PKR165.48; BDT84.8)