Currency depreciation in India, allowance of tankers in Pakistan’s ship cutting and decline in finish steel prices in Bangladesh remained the major dynamics of Asian scrap market this week.
Indian scrap importers remain waiting amid stable offers –
As per recent conversations with market participants SteelMint learned that, Indian imported scrap market witnessed less trades this week. Most of the buyers remained cautiously away from the buying in bulk volumes amid currency depreciation. Indian Rupee depreciates to 13 month’s low against USD to Rs 66.95 this Wednesday. Participants are also waiting to get clear price direction in the global market.
However, few trades have concluded for UK origin Shredded in containers at USD 387-390/MT, CFR Nhava Sheva. Offers from USA for premium Shredded in containers remain stable W-o-W in the range of USD 390-395/MT, CFR Nhava Sheva.
Offers for South African HMS 1&2 scrap assessed stable at USD 375-378/MT, CFR while price assessment for Dubai origin HMS 1 remained at USD 377-380/MT, CFR Nhava Sheva. West African and European HMS scrap assessed at USD 355-365/MT, CFR levels depending on the quality of scrap.
Indian domestic scrap price scenario – On W-o-W basis, domestic scrap prices in India observed stability in the Southern regions while uptrend in Northern regions. Currently, HMS (80:20) prices in Mumbai and Chennai have come in line and assessed in the range of INR 26,200-26,400/MT (USD 393-396) (Basic prices, GST @ 18% extra).
Pakistan steel mills remain active for scrap bookings before Ramadan holidays –
Steel mills in Pakistan continued restocking the scrap amid constantly increasing finish steel and billet prices in local markets. Also, scrap inventories are still low with steelmakers.
Importers have booked Shredded 211 in containers from USA/UK based reliable recyclers at around USD 390-395/MT and from few traders at upto USD 390/MT on CFR port Qasim basis. Europe origin 500 MT Shredded sold at USD 386-387/MT, CFR levels. While offers for HMS 1 from UAE remained at USD 380-385/MT, CFR.
Pakistan’s ship cutting market buoyed positive over reopening of tankers market for operations. As an impact of this, price expectations have moved up for yard owners and supply side likely to get improved in the local market in Pakistan.
CC billets grade 60 assessed at PKR 80,000-80,500/MT (USD 692-696), ex mills including taxes. Participants remain more hopeful towards international markets as local prices are at par with an international market in Pakistan.
Bangladesh scrap buyers turn silent amid sharply collapsed rebar prices –
Bangladesh witnessed sharp fall in the local rebar prices by BDT 2,500-3,000/MT (USD 30-36) W-o-W, Decline in demand for rebar amid sluggish construction activities has also resulted in the slowdown in inquiries for imported scrap. Steel mills turned silent for imported scrap bookings amid sufficient inventories available and easier accessibility from local ship breaking markets.
Shredded scrap assessment from USA/UK in containers heard stable in the range of USD 400-405/MT, CFR Chittagong. While offers for P&S from Brazil assessed at around USD 410/MT, CFR.
Ship breaking prices remained stable on W-o-W basis in Bangladesh. Prices assessed at USD 420/LDT for general dry bulk cargo, at USD 430/LDT for tanker cargo and at USD 430/LDT for containers respectively on CNF Bangladesh basis.
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