Following sharp fall in scrap prices in the largest importing country- Turkey, global scrap offers have corrected further this week. Added to which, slowdown in scrap purchases ahead of approaching EID holidays in Bangladesh, UAE and Pakistan has pressurized Shredded scrap offers in Indian subcontinent markets.
Indian imported scrap market witness minor trades – In recent conversations with market participants, SteelMint learned that Indian scrap importers observed thin trades at further declined prices however, less clarity about price levels in global market and an optimism about further correction keep buyers in wait and watch mode.
Indian domestic semis market has showed marginal fall since last couple of days while Alang based ship cutting market has observed weaken sentiments on low demand.
Price assessment from UK and Europe based containerized Shredded stands at USD 340-345/MT, CFR Nhava Sheva. Very few offers from UAE for HMS 1&2 (80:20) were available in the market and assessed stable at around USD 335/MT and for HMS 1 at around USD 340-343/MT, CFR.
Currently, HMS 1&2 (80:20) basic prices assessed at INR 25,300-25,500/MT (USD 362-365),ex- Mumbai while prices assessed at INR 27,000/MT, ex-Raipur and at INR 23,800/MT, ex-Chennai with GST @ 18% extra.
Imported scrap market in Bangladesh closes amid EID holidays – No significant change in imported scrap prices heard in Bangladesh as the market turned quiet on EID holidays and likely to remain close throughout this week.
Buyers bidding for Shredded scrap in containers for UK/Europe origin heard at USD 345-350/MT, CFR Chittagong, however, very few offers heard at USD 350-355/MT levels which have come down by USD 5-7/MT W-o-W. Last week Shredded was sold at USD 360/MT levels. Despite which importers remain silent expecting activities to resume back after EID holidays actively at further corrected prices.
Few bulk offers for Shredded scrap heard at USD 360/MT, CFR Chittagong levels and HMS 1&2 (80:20) offers in containers remain in the range of USD 330-335/MT from Brazil and Australia. Local market remains weak and close over ongoing EID holidays in the country. Local scrap prices in Bangladesh remain at BDT 34,000-34,500/MT, ex-works levels.
Pakistan imported scrap market soften further, buying subdued – Imported scrap offers for Shredded scrap dropped down at USD 335-340/MT, CFR Qasim from recyclers in UK/USA. As an impact of closure for EID holidays, weak demand and liquidity issues local billet, rebar and scrap prices in Pakistan remain still weak.
According to sources, average prices for local billet (Bala) stand at PKR 68,500-69,000/MT (USD 559-563) presently ex-plant inclusive of taxes depending on delivery terms. Rebar prices from major mills in Punjab region presently assessed at PKR 96,000-97,000/MT, ex-works. Major steelmakers in the country keep offers for premium rebar at around PKR 102,000/MT, ex works.
“Buyers are expecting for further USD 10-15/MT correction in scrap prices and the market is likely to resume activities with improvement in local demand after EID holidays for another one weeks’ time” shared a local market source.
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