SteelMint learned from industry participants that containerized scrap prices in South Asia have dropped further this week. Indian market continued observing limited trades on weak finish steel demand while other subcontinental markets, Pakistan and Bangladesh have remained almost closed on account of ongoing Eid holidays. Turkey’s imported scrap prices continued downtrend on dull sentiments in the market. SteelMint’s reference price of HMS 1&2 (80:20) stands at USD 300-305/MT, CFR Turkey. However, further downfall remains limited.
Indian imported scrap prices continue downtrend on subdued demand – SteelMint’s assessment for containerized Shredded from US and Europe, UK moved down in the range USD 320-325/MT, CFR Nhava Sheva, down USD 8-10/MT against last week’s report of USD 330-333/MT, CFR.
Trades for Shredded scrap have been reported at USD 320-323/MT, CFR from US origin. While UK based recyclers were quoting in the range USD 325-327/MT, CFR Nhava Sheva and USD 330-335/MT, CFR Vizag. P&S scrap was being offered at around USD 343-345/MT, CFR.
UK origin HMS scrap concluded in containers in the range of USD 305-307/MT, CFR Nhava Sheva. While HMS 1&2 from South America was being offered mostly at around USD 315/MT, CFR.
South African HMS 1&2 offers stand in the range of USD 325-330/MT, CFR. Dubai origin HMS 1 traded in limited volume in the range of USD 320-325/MT, CFR Nhava Sheva. Few trades for West African origin containerized HMS were reported in the range of USD 307-310/MT, CFR India standing competitive with domestic scrap prices.
Domestic melting scrap prices hit 10 months low levels – India’s domestic scrap market observed limited trade activities amid weak demand while prices dropped marginally on a weekly basis. Central India’s sponge iron prices hit 18 months low while domestic melting scrap prices hit 10 months low which were witnessed prior to this in Aug’18.
Assessment of local HMS 1&2 (80:20) stands at INR 24,600-24,800/MT (USD 354-357), ex- Mumbai and INR 23,200-23,400/MT (USD 334-337), ex-Chennai with USD/INR exchange rate remain range bound at 69.4 levels today against 69.7 a week back.
Pakistan and Bangladesh remain silent amid Eid holidays – Pakistan’s government declared officially a long Eid holiday over this week, following which market activities have turned very silent. Bangladesh also remained away from scrap imports amid Eid holidays and country’s budget scheduled towards mid of the month. It is being expected that sentiments may improve in South Asia on pick in scrap demand after Eid holidays.
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