The South Asian ferrous scrap market turned busy today as Pakistan returned to activity after a long period. It concluded a series of deals today at a price range of $480-490/tonne (t) after banks approved letters of credit (LCs) of small amounts. However, currency depreciation still remains a major concern for the country.
Indian ferrous scrap offers were down as the market remained stagnant with no major buying activities seen due to limited finished steel demand. Prices, in fact, slightly corrected downwards by up to INR 500/t ($6/t). Further, domestic scrap prices were almost on par with those from overseas. For instance, HMS 80:20 from Europe is at around $450/t while domestic scrap is hovering at INR 39,000-39,500/t in Mumbai and Jalna, DAP.
Meanwhile, Bangladesh’ ferrous scrap buyers were active in containers over the last few days. In the last week total of 40,000 t containers of PNS was concluded at $500-510/t from Malaysia-Singapore including HMS grade from Brazil was concluded at $475-480/t.
“The market is quite good. Domestically, people are buying. But imported material booked now will be delivered in May. Due to possible rains around that time of the year, the market is slow on imports,” a Bangladeshi trader stated.
Recent deals:
- Around 500 t of Australian containerised shredded were booked at $505/t CFR Bangladesh, followed by 500 t of HMS bundles of Hong Kong origin at $460/t on CFR Bangladesh basis.
- Around 5,000 t of Europe-origin containerised shredded were booked at $480-490/t on CFR Pakistan basis.
Price assessments
- Europe-origin shredded scrap offers into India stood at $475/t CFR Nhava Sheva, down by $5/t d-o-d.
- UK-origin shredded scrap prices stood at $515/t CFR Chattogram, down by $15/t d-o-d.
- UK-origin shredded scrap prices stood at $488/t CFR Qasim, down by $2/t from previous offers.
Leave a Reply