Indian scrap plummets; limited deals in Bangladesh, Pakistan
The arrival of the monsoon, coupled with prevailing market sluggishness and availability of cheaper direct reduced iron, have significantly impacted the intake of scrap in India. As a result, imported scrap offers plummeted by around $10-12/tonne on-week, sources tell Kallanish.
Offers for containerised US-, UK-, and EU-origin shredded scrap are noted at $418-420/tonne cfr Nhava Sheva, Chennai, and Mundra. Most bookings were concluded at these levels in Mundra and Pipawa. A few bookings were also heard concluding at $415/t cfr Mundra on Wednesday.
Offers for Poland-origin busheling and PNS are noted at $440-445/t and $430-435/t, respectively, cfr Mundra.
A few deals for Poland-origin HMS were made at $410-412/t cfr Chennai. Brazil- and Chile-origin HMS were booked at $405-407/t cfr Mundra.
Deals for West African-origin HMS 80:20 scrap were concluded at $400-402/t cfr Mundra in 20-21-tonne containers. Meanwhile, West African-origin HMS 80:20 offers in 22-23t and 25-26t containers were heard at $405-407/t and $410-412/t cfr Mundra, respectively.
Offers for Bahrain- and Kuwait-origin HMS were heard at $430-435/t cfr Mundra.
Meanwhile, no offers were reported for United Arab Emirates-origin HMS.
"The monsoon has started in almost all parts of India and owing to this, the demand for steel is dropping noticeably," says a mill source. "There is so much risk now ... Cash liquidity is very low in the market; offtake is slow; inventories are thus increasing."
Speaking about importing scrap, the source adds: "Sponge iron is still more viable as there is still a difference of INR 3,000-4,000 [$37-49] for producing hot metal from sponge iron versus scrap. As a result of this, a majority of mills have raised the intake of DRI."
Offers for Hospet-origin DRI lumps 80% Fe plummeted to around INR 30,500-31,000/t ($396) dap Gandhi Dham and DRI pellet 78% Fe is heard at INR 29,500-29,700/t dap Gandhi Dham. Bookings for Qatar-origin DRI 80% Fe are meanwhile heard being made at INR 31,500/t cfr Mundra.
Meanwhile, delayed financing continues to haunt Pakistan- and Bangladesh-based steel mills, resulting in very limited bookings being made in both nations. Offers for UK- and EU-origin shredded scrap were noted at $425-428/t cfr Port Qasim, whereas bids were noted at $422-423/t cfr Port Qasim.
In Bangladesh, bulk HMS, shredded, and bonus are noted stable at $422-425/t, $425-430/t, and $435-440/t cfr Chattogram respectively. No bulk bookings were made this week. Meanwhile, a few containerised deals for Australian HMS were heard at $415/t cfr Chattogram on Wednesday.
Both the Pakistan and Bangladesh markets are observing Eid al Adha holidays and will be closed for the rest of the week.
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Anonymous
Very good overview of the weekly steel market.
Anonymous