SteelMint learned from industry participants that containerized scrap offers to South Asia have recovered back by around USD 10/MT following the recent hike in imported scrap prices in Turkey. Participants expect that strong sentiment in the global market to keep imported scrap prices supported in the near terms.
Indian imported scrap trades likely to pick up shortly – Indian ferrous scrap market has witnessed a considerable hike in prices this week on account of strengthening of sentiments at both global and domestic levels. The expected increase in demand following the positivity on the Indian election outcome and expected boost in the construction sector, likely to keep prices supported. However, significant trade activities are yet to pick up in the market.
SteelMint’s assessment for containerized Shredded from Europe, UK and US stand in the range USD 333-335/MT, CFR Nhava Sheva, rising by USD 10-12/MT against last week’s report. Few deals were reported in this price range, with buying interest standing at USD 330-335/MT, CFR. Few leading suppliers, however, are offering in the range of USD 335-340/MT, CFR.
European origin HMS offers also rose by around USD 10/MT from last week and are being reported in the range of USD 315-325/MT, CFR depending on quality. Dubai origin HMS 1&2 scrap offers remained in the range of USD 325-330/MT as per quality on account of limited supply amid ongoing Ramadan season. South African HMS 1&2 offers marginally increased and stands in the range of USD 330-333/MT, CFR.
Deals for West African origin containerized HMS were reported in the range of USD 310-315/MT, CFR India.
Price assessment of local HMS 1&2 (80:20) has marginally increased by INR 300/MT on weekly basis to INR 23,500-23,800/MT (USD 338-342), ex-Chennai while remained stable at INR 24,800-25,000/MT (USD 356-359), ex- Mumbai. Indian currency appreciated against USD this week as the current USD/INR exchange rate stands at 69.9 levels today against 70.2 levels a week back.
Pakistan remains slow for scrap imports after currency depreciation – Pakistan’s local steel market observed a jump in steel prices by around PKR 3,000/MT (USD 25) on a weekly basis as an impact of its currency depreciation. Pakistan Rupee stands at 152-153 levels today against USD. Few steelmakers have turned interested for scrap bookings amid limited stocks in hand. They managed to raise their bids following the recent hike in global scrap prices amid indications of this hike to sustain for upcoming days.
SteelMint’s assessment for containerized Shredded scrap recovered to USD 330-335/MT, CFR Qasim, up USD 7-10/MT against the last week. Few trades for Shredded scrap were reported at USD 327-328/MT, CFR in the beginning of the week.
Most of the steelmakers remained cautious before buying scrap in the large volumes and the demand is likely to improve further at increased prices after the Eid Holidays in the opening of June month, once normal activities resume in Pakistan.
Leave a Reply