Imported shredded scrap prices in South Asia increased with only a few suppliers doling out offers. On the demand front, Pakistan resumed buying inquiries. Indian and Bangladeshi mills are also likely to be in the market with their inventories dipping.
The daily Davis Index for containerized shredded, Tuesday, settled at $282.45/mt cfr India subcontinent, up by $1.9/mt.
The Davis Index for containerized US-origin HMS 1&2 (80:20) settled at $257.95/mt cfr India subcontinent, down by $1.75/mt from $259.70/mt from Monday. Bids for US-origin HMS 1&2 (80:20) were in the range of $250-255/mt cfr Qasim and Nhava Sheva.
Among the three major South Asian markets, Pakistan is the most active at present. Although limited, continued demand for steel has given ferrous scrap trades an impetus. Some mills, however, are still exercising caution before booking material at current levels.
The Davis Index for US-origin containerized shredded settled at $287/mt cfr Port Qasim Tuesday, up by $3/mt from Monday. Trades for US-origin shredded were at $283-285/mt cfr Qasim. A few supplier yards in UK/Europe managed to sell shredded at $288-290/mt cfr Qasim.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $265/mt cfr Qasim, unchanged from Monday. There were a handful of suppliers offering UAE material in the market. Trades for UAE-origin HMS 1&2 (80:20) were at $265-270/mt cfr Qasim. The index for US-origin HMS 1&2 (80:20) was at $260/mt cfr Qasim, unchanged from Monday.
Prices for commercial Bala billet are on an uptrend due to rising input costs and increased sales this week. Bala billet traded at PKR93,500-93,800/mt ex-yards Lahore, inclusive of local taxes on Tuesday, up by PKR300-500/mt. Trades for domestic mixed HMS and P&S scrap were at PKR73,000/mt delivered Lahore mill, flat from Monday.
Imported ferrous scrap trades in India have remained limited, but are likely to pick up in the coming days due to a shortage of domestic scrap, state Davis Index sources. This, provided demand for finished steel like rebar increases.
A major induction furnace steelmaker in Gujarat reportedly sold 10,000mt billets at $391/mt cnf Indonesia or $371/mt fob India. Earlier, trade for 6000mt of billets in containers was heard at $373/mt fob India with a Malaysian buyer despite offers of $375/mt fob India for Southeast Asian buyers last week.
In the bulk market, US west coast suppliers offered shredded at $275/mt cfr Kandla with bids lagging at $250-255/mt cfr Kandla. Sellers have thus turned their attention to Bangladesh or Pakistan where bids are not as low.
The daily Davis Index for containerized shredded settled at $278/mt cfr Nhava Sheva, up by $1/mt from Monday. Offers for US-origin shredded are in the range of $280-285/mt cfr Nhava Sheva.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $255/mt cfr Nhava Sheva, down by $5/mt from Monday. Indian mills are not bidding for UAE and US-origin HMS 1&2 (80:20) above $250/mt cfr Nhava Sheva amid weak finished steel demand and subdued buying interest.
US and European yards expect the ban on scrap exports from South Africa and UAE to support their prices. Trades for West African scrap reported at $240/mt cfr Nhava Sheva.
The index for US-origin HMS 1&2 (80:20) settled at $255/mt cfr Nhava Sheva, down by $5/mt from Monday. Suppliers are offering the grade at $260-265/mt cfr Nhava Sheva with buyers at $245-250/mt cfr Nhava Sheva levels.
Few Bangladeshi steelmakers were in the market for imported ferrous scrap on Tuesday as their inventories dipped. Steel demand in the country has started reviving.
Davis Index heard that a major steelmaker in the country booked 32,000mt shredded cargo from US West Coast supplier at around $275/mt cfr Chattogram levels though there was no confirmation. Offers for US-origin HMS 1&2 (80:20) were at $275/mt cfr Chattogram.
Domestic ship breaking scrap offers remained competitive with prices dropping to BDT25,500-26,000/mt ex-yards amid increased availability.
The Davis Index for US-origin containerized shredded settled at $291/mt cfr Chattogram, down by $1/mt from Monday. Offers from Europe and UK yards were unchanged at $290-295/mt cfr Chattogram. Sellers from Australia and New Zealand offered shredded cheaper at $280-285/mt cfr Chattogram. Bids were lower by $5-10/mt than these levels.
The index for Latin America-origin HMS 1&2 (80:20) settled at $268/mt cfr Chattogram, up by $3/mt from Monday. Offers for #1 HMS from Brazil, Chile, and Europe were also flat at $270-275/mt cfr Chattogram. The index for US-origin HMS 1&2 (80:20) settled at $275/mt cfr Chattogram, unchanged from Friday.
Imported scrap prices in Taiwan were flat on Tuesday with no trades heard. The ongoing 2020 Pacific typhoon season expected to last till August at the minimum, is likely to hit demand. Buyers thus were not keen on higher prices. The Davis Index for containerised US-origin HMS 1&2 (80:20) was unchanged at $230/mt cfr Taiwan from Monday.
Offers for US-origin HMS 1&2 (80:20) were unchanged at $225-230/mt cfr while bids were at $225-228/mt cfr Taiwan. With Turkish bulk scrap index settling at $256.25/mt cfr, up by $4/mt, market participants in South Asia believe offers are likely to go up.
In the domestic market, scrap and rebar prices remained flat. Domestic steelmaker Feng Hsin steel rolled over its prices from the prior week.
Japan’s Tokyo steel also rolled over its August shipment finished steel prices after increasing it by 7.3pc in July. The steelmaker is waiting for the market to absorb this earlier price raise. Traders are expecting demand for finished steel from Chinese buyers to sustain and result in an uptrend in Japanese domestic ferrous scrap prices later this month.
In small bulk markets, Japanese HMS 1&2 (50:50) was offered at $248-250/mt cfr Taiwan, up by $8/mt with bids at $245/mt cfr Taiwan.
($1=Rs75.38; BDT84.8; PKR167.26; TWD29.49)