Imported ferrous scrap prices in South Asia continued to trend up amid rising global scrap prices. Mills in Turkey are likely to resume buying as soon as they return to the markets and prices could reach a six-month high. Trading in Pakistan and Bangladesh, two major South Asian buyers, remained thin as the Eid-al-Adha holiday haze is yet to wane. Market participants have forecast a shortage of scrap in India as production has picked up with a push from increased finished steel sales and prices.
The daily Davis Index for containerized shredded rose by $2.43/mt from Tuesday to settle at $306.31/mt cfr India subcontinent. Suppliers kept offers high and buyers were in search of lower-priced material than these levels.
The index for containerized US-origin HMS 1&2 (80:20) settled at $288.43/mt cfr India subcontinent, up by $2.96/mt on Wednesday.
In Turkey, US-origin HMS 1&2 (80:20) bulk prices neared $280/mt cfr Turkey. Offers by most supplier countries on Wednesday reached a six-month high with spot iron ore prices one-year high of $118/mt cfr China. Bullish raw materials prices strengthened the market sentiment.
Pakistani ferrous scrap importers are slowly returning to the market after Eid holidays. Trades are expected to gain momentum from next week. Though finished steel demand remained low, prices are likely to improve with rising input costs.
The Davis Index for containerized shredded settled, Wednesday, at $308/mt cfr Port Qasim, up by $2/mt from Tuesday. Trades for the US and Europe-origin shredded were at $306-310/mt cfr Port Qasim. Offers by UK suppliers for the grade were at $310-315/mt cfr Port Qasim.
Demand remained strong in Pakistan as most of the infrastructure projects are expected to resume operations soon. The government also announced new projects in the China-Pakistan corridor infusing optimism in the market.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $297.25/mt cfr Port Qasim, up by $0.58/mt from Tuesday. Trades for UAE-origin mix #1 HMS and P&S were at $300-305/mt cfr Port Qasim.
The index for US-origin HMS 1&2 (80:20) settled at $290.43/mt cfr Qasim, up by $2.93/mt from Tuesday. Most US yards either withdrew offers or were not ready to liquidate on Wednesday. UK-origin HMS 1&2 (80:20) traded at $290/mt cfr Port Qasim with a few suppliers offering at $295/mt cfr Port Qasim. Busheling was offered at $315-317/mt cfr Port Qasim.
Offers for imported ferrous scrap in India maintained their upward trajectory as steel prices in the country continued to rise. Limited availability of material with mills and traders is likely to boost trades. Finished steel prices in the country rose by Rs1,000-1,500/mt in a week.
The Indian currency appreciated to Rs74.84 against US$1 on Wednesday from above Rs75 levels on Monday. The resulting conversion gain enabled importers to book ferrous scrap aggressively.
The Davis Index for containerized shredded settled at $307/mt cfr Nhava Sheva, up by $3.75/mt from Tuesday. Offers for UK/ European- origin containerized shredded were in limited numbers at $308-310/mt cfr Nhava Sheva. Mills are likely to opt for shredded if the domestic HMS 1&2 (80:20) prices remain at the current price levels. The price gap between the two variants remains narrow.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $288.75/mt cfr Nhava Sheva, up by $2.50/mt from Tuesday.
A few trades for Brazilian and Australian HMS 1&2 (80:20) closed at $285/mt cfr Mundra and Nhava Sheva. Offers were unchanged at $290/mt cfr Nhava Sheva.
Offers for US-origin HMS 1&2 (80:20) were at $290/mt cfr Nhava Sheva on Wednesday. The index for US-origin HMS 1&2 (80:20) settled at $287.86/mt cfr Nhava Sheva, up by $3.86/mt from Tuesday. Suppliers were not ready to accept bids below $285/mt cfr Nhava Sheva as international prices stay bullish. A few mills raised their bids by $3-5/mt than late last week to procure material.
A steel mill in Southern region booked HMS 1&2(80:20) in containers from Australia at $290/mt cfr Chennai
Bangladeshi steel mills remained away from the trades amid bullishness in scrap prices globally. Domestic market fundamentals too remained weak. Steel prices in the coming days are expected to rise amid positive market sentiment.
A few mills booked competitively priced Japanese bulk cargoes and trade for 10,000mt of Japanese HMS 1&2 (80:20) was heard at $282/mt cfr Chattogram. Around 15,000-18,000mt of Japanese scrap traded distributed in three small bulk cargoes.
The Davis Index for containerized shredded was at $313.13/mt cfr Chattogram, up by $0.63/mt from Tuesday. Offers for shredded from UK yards were at $315-320/mt cfr Chattogram, but buyers were interested in lower-priced shredded from Australia/New Zealand which was traded at $295-300/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) settled at $293.33/mt cfr Chattogram, up by $0.83/mt on Wednesday. Offers for #1 HMS from Brazil, Chile, and Europe were at $295/mt cfr Chattogram, countering bids of $285/mt cfr Chattogram from small- scale furnaces in the country.
The daily index for US-origin HMS 1&2 (80:20) Wednesday was at $298.75/mt cfr Chattogram, up by $1.25/mt. Yards are not ready to offer HMS 1&2 (80:20) below $300/mt cfr Chattogram.