Imported scrap offers inched up this week in India, Pakistan and Bangladesh markets, however, buyers remain apprehensive towards fresh bookings as buying interest has not picked up yet.
Indian imported scrap market calm over the fiscal year ending – trade sources
As per recent conversations with market participants SteelMint learned that, Indian imported scrap market witnessed very less activities as local steel prices are not much supportive to current international imported scrap offers and approaching financial year end has also resisted importers from booking scrap at high prices.
“Indian steelmakers are well covered with scrap stocks for month of April. Most of them are ‘waiting and watching’ international markets to correct in order to resume bookings for May arrivals, which are likely to start only in the first week of April. Finish steel inventories are being cleared right now over the ending of the financial year” shared a market source.
Indian imported scrap offers moved up by USD 5/MT W-o-W basis. Shredded scrap offers from UK and USA origins assessed at around USD 400-405/MT, CFR Nhava Sheva. Thin trade for Shredded in containers last heard at USD 405/MT, CFR Chennai by Cochin based buyer. UK based HMS 1&2 (80:20) is being offered at USD 375/MT, CFR. HMS 1&2 (80:20) from Dubai assessed at USD 385/MT, CFR Nhava Sheva.
Domestic scrap prices in India exhibited weak sentiments on W-o-W basis. Domestic scrap prices moved down by INR 300-400/MT at few major cities over weak finish steel demand. Currently, HMS (80:20) prices in Mumbai and Chennai are assessed in the range of INR 25,000-26,000/MT (USD 390-405) (Basic prices, GST @ 18% extra).
Bangladesh imported scrap prices are likely to soften over weak rebar offers-
“Recently Bangladesh scrap importers booked thin trades at increased prices but it looks like imported scrap prices will no longer remain strong and will soften soon on the recent price fall by upto BDT 2000/MT (USD 24) in rebar and finish steel offers in Bangladesh”- shared a source from Bangladesh.
Offers for Shredded scrap from Europe in containers remained at USD 412-415/MT, CFR Bangladesh. While according to sources, South African Shredded scrap sold at USD 420/MT, CFR Chittagong and HMS 1 in thin quantities booked at around USD 403/MT, CFR Chittagong. HMS 1&2 (80:20) in containers assessed at around USD 398-403/MT, CFR from Dubai, South Africa and Australia.
On the other hand, Bangladesh ship breaking market observed robust sentiments again last week. Almost four sales concluded for three VLCC and one tanker at almost stable prices of USD 450/LDT for general dry bulk cargo, at USD 470/LDT for tanker cargo and at USD 470/LDT for containers respectively on CNF Bangladesh basis. Domestic ship breaking prices assessed in the range of BDT 35,500-35,500/MT (USD 419-425) in Bangladesh.
Pakistan scrap market came at standstill post currency devaluation –
On 20th March, Pakistan Rupee (PKR) suddenly depreciated by almost 6-7% from 110.5 earlier to 117-118, which stands at 116 today against USD. Most of the trade participants got confused and kept seeking for clear direction on the impact of currency devaluation.
“Sudden currency devaluation had brought Pakistan steel market at standstill. This will add around PKR 3000/MT (USD 25) enhancement in the cost of scrap and may further hit domestic market unfavorably more than imported scrap market. It will take almost two weeks’ time to examine the clear impact of currency devaluation” shared a source.
Offers for Shredded scrap assessed at USD 405/MT, CFR Pakistan from UK and Europe. While HMS 1 from Dubai assessed at around USD 387-390/MT, CFR Port Qasim.
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