Imported Scrap Offers Rise in South East Asian Nations

This week remained silent in terms of imported scrap trade activities owing to festive season in Pakistan and Bangladesh. And in India imported scrap market remained silent amid new tax reform – GST. However it is expected that the nations will gear up with booking more scrap vessels in the coming time owing to less inventories.

Turkey scrap import prices continues to rise on supply concerns – Scrap import prices in Turkey continued with its upward movement this week owing to tight supply and more bookings from Turkish steel mills. In few deals concluded of US origin scrap (HMS ) was sold at USD 287-291/MT, CFR Turkey and Shredded scrap prices were heard at USD 295/MT, CFR Turkey and P& S scrap prices remained at USD 297/MT, CFR Turkey.

Scrap trade activities in Indian market remained dull owing to GST – Indian scrap importers remained less active owing to new tax reform (Goods & Services Tax – GST) which has come into effect from 01 Jul’17. However sources anticipate scrap imports to increase in the coming days. As per sources, Japanese scrap of around 15,000-20,000 MT quantity was heard to have booked last week.

Imported scrap offers to Pakistan move up – Offers for Shredded scrap in bulk were heard to be around USD 312/MT CFR Port Qasim and in the range of USD 310-315/MT, CFR Port Qasim for containerized cargoes. Offers for HMS scrap should remain around USD 300-305/MT, CFR basis.

Scrap importers in Pakistan who had booked around 3-4 bulk vessels in May’17. One vessel arrived at berth in Pakistan by Jun’17 end and other vessels are also likely to arrive by Jul’17 end.

Freight disparity between bulk and containerized cargo narrows down –

Importers were seen preferring bulk cargoes over containerized since quite a long time owing to freight advantages. Market participants highlighted that the disparity between bulk and containerized cargoes is narrowing down and they might switch to containerized cargoes if same situation persists.

Bangladesh based buyers silent owing to Eid festival – Scrap importers in Bangladesh remained silent this week owing to festive season of Eid-ul-Fitr. No firm offers were heard however as per SteelMint’s assessment Shredded scrap offers for bulk cargoes which were last heard at USD 300-310/MT, CFR basis, should move up to USD 310-315/MT, CFR basis early next week.

Ferrous Scrap Import Reference prices

Source: SteelMint Research