South Asia: Steel Mills Turn Active for Bulk Scrap Bookings

SteelMint learned from industry participants that steel mills in South Asia, especially in Bangladesh and India, have turned active for bulk scrap cargo bookings.

Two bulk scrap cargo bookings were reported in Bangladesh and one cargo booking was learned to be under negotiation by Indian mills. US scrap suppliers have started offering at lower levels after recent fall in global offers.

According to sources, a leading scrap importer based in Gujarat, western India is under negotiation for bulk cargo from a US-based recycler comprising 30,000-32,000 MT mix scrap at around USD 325-330/MT, CFR Kandla.

Trades in containers remained limited in India - Indian market has continued observing comparatively limited activities in containers on ongoing elections in the country. Buying interest stands USD 5-10/MT lower than prevailing offers amid an expected correction in global scrap prices.

SteelMint’s assessment for containerized Shredded from Europe, UK and US stand at USD 330-335/MT, CFR Nhava Sheva. Most of the buyers are in 'wait and watch' mode to see the final outcome of elections after which improvement in activities is expected. Few offers also heard in the range of USD 328-330/MT, CFR for Shredded but hardly any major deal reported at these levels.

South African HMS 1&2 remained almost stable in the range USD 330-333/MT, CFR while few trades of Dubai HMS 1 being concluded below USD 330/MT, CFR depending on quality. SteelMint’s assessment of West African HMS 1&2 in 20-21 MT containers stands at USD 310-315/MT, CFR India.

Indian domestic scrap prices comparatively flat - Price assessment of local HMS 1&2 (80:20) scrap remained flat at INR 24,900-25,100/MT (USD 359-362), ex- Mumbai and INR 24,100-24,300/MT, CFR Chennai slightly down by INR 100-200/MT against last week report.

Notably, Indian Rupee has strengthened by around 1% over this week and stands at 69.2 level today against 69.9 levels against US Dollar last week. Strengthening of INR against USD has resulted in lower freight variable to India which could support import bookings.

Bangladesh steel mills booked two bulk cargoes - Following softening of global scrap offers and before going towards slowdown for Ramadan, steel mills in Bangladesh reported to have booked two more bulk cargoes this week. Out of two, one cargo comprising completely Shredded has been sold at USD 340-345/MT, CFR and another comprising mixed grade at around USD 335-340/MT, CFR Chittagong.

Imported scrap offers in Pakistan remain range-bound - Recent Shredded scrap offers to Pakistan are being reported in the range USD 327-332/MT, CFR port Qasim from UK and US origins, down slightly against USD 330-335/MT, CFR levels reported last week.