Bulk scrap market to South Asia has resumed again post lockdown period, after the news of two fresh bulk cargo bookings to the region from USA, which may be an indication of demand returning in the market.
In a latest deal confirmed yesterday, Mughal Steel – one of the largest steelmakers in Pakistan, booked a 32,000 MT cargo from a prominent USA based recycler, comprising Shredded scrap in entirety, at a price of USD 282.5/MT CFR Qasim. The booking was confirmed by both the buyer and the seller, while the shipment is expected in early July.
Pakistan resumed bulk scrap bookings in Feb’20 after a gap of over 2 years. In the last couple of years, Pakistani mills had relied entirely on containerized bookings on more feasibility, however the container shortage issues this year since February may have encouraged larger buyers to resume bulk bookings again.
Additionally, a bulk booking to a west India based mill was reported recently, where a USA origin mixed cargo with 20,000 MT Shredded and 10,000 HMS scrap were booked at an average price of USD 280/MT CFR Kandla. Although confirmation is still awaited on this booking, while the shipment is expected by late June.
India’s bulk ferrous scrap imports witnessed a sharp decrease by 42% on a yearly basis. The country imported a total of 312,410 MT of scrap in FY’20 (Apr’19- Mar’20) as against 536,771 MT of imported in FY’19.
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