Imported ferrous scrap prices rebound on Tuesday as buyers started accepting current offers amid limited inventories in hand. Prices rose in Pakistan and Bangladesh. Prices in India, however, remained unchanged as mills continued to opt for lower-priced domestic scrap and sponge iron.
The daily Davis Index for containerised shredded settled at $276.10/mt cfr India subcontinent, up by $2.3/mt from $273.8/mt cfr.
The Davis Index for containerised US-origin HMS 1&2 (80:20) settled at $259.40/mt cfr India subcontinent, up from $256.95/mt by $2.45/mt cfr from Monday.
Mills were back in the market for imported ferrous scrap amid limited inventories in hand. Most steelmakers are optimistic about a rise in steel demand supporting prices in the coming days.
Work on stalled infrastructural projects has resumed with the new financial year beginning on July 1.
The Davis Index for US-origin containerized shredded settled at $281/mt cfr Port Qasim, up by $3/mt from Monday. Trades for US-origin shredded were at $278-280/mt cfr Qasim while offers were $284-285/mt cfr Qasim from suppliers in the UK and Europe on Tuesday.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $265/mt cfr Qasim, unchanged from Monday in absence of trades. At present only a handful of traders from UAE are offering material and prices are also likely to drop to $250-255/mt cfr Qasim.
The index for US-origin HMS 1&2 (80:20) was at $263/mt cfr Qasim Monday, up by $3/mt from Monday. Offers from US suppliers increased to $265-270/mt cfr Qasim.
Trades for Europe and UK origin HMS 1&2 (80:20) in containers were reported at $255/mt cfr Qasim on Tuesday.
The commercial Bala billet traded on Tuesday at PKR93,500-94,000/mt ex-yard Lahore, inclusive of local taxes, unchanged from the prior week. Trades for domestic mixed of HMS and P&S scrap were at PKR72,000-72,500/mt delivered mill Lahore, up by PKR500-800/mt from Monday.
Despite a rise in imported scrap prices in Pakistan, ferrous scrap import prices in India remained under pressure.
The Davis Index for containerised shredded settled at $271/mt cfr Nhava Sheva, up by $1/mt from Monday. No major trades were reported in the market after bookings of US-origin containerised shredded reported at $265-270/mt cfr Nhava Sheva on Monday.
Most mills though were away from these levels as they continue to struggle with finished steel demand.
The Davis Index for HMS 1&2 (80:20) of UAE-origin settled at $254/mt cfr Nhava Sheva, down by $1/mt from Monday. However, a few suppliers are offering the grade at $260-262/mt cfr Nhava Sheva for late July loading from UAE and South Africa.
The index for US-origin HMS 1&2 (80:20) settled at $257/mt cfr Nhava Sheva, up by $2/mt from Monday. A few offers for the grade in containers were at $260-265/mt cfr Nhava Sheva with buyers still targeting $245/mt cfr Nhava Sheva.
Steelmakers were largely away from trades as they await clarity on the market’s dynamics. Monsoons have slowed construction activity and buyers are adopting a just-in-time inventory strategy.
Domestic ship breaking scrap was offered at BDT26,500/mt ex-yards, a preferred choice for many mills due to its competitive prices. After resuming of truck movement sponge iron trades are expected to pick up from India.
The Davis Index for US-origin containerised shredded settled at $285/mt cfr Chattogram, up by $3/mt from Monday. Trades for containerised shredded from the UK were reported at the index price. Offers from Europe and UK yards were at $290/mt cfr Chattogram. Mills thus opted for material from Australia and New Zealand and trades for shredded were confirmed at $275-280/mt cfr Chattogram.
The index for Latin America-origin HMS 1&2 (80:20) inched up by $2/mt to $262/mt cfr Chattogram. Offers for #1 HMS from Brazil, Chile and Europe were at $265-270/mt cfr Chattogram.
The index for US-origin HMS 1&2 (80:20) settled at $266/mt cfr Chattogram, up by $1/mt from Monday. Offers from yards were in the range of $270-275/mt cfr Chattogram.
($1=Rs74.88; BDT84.56; PKR165.8)