SOUTH ASIA STEEL SCRAP: Demand still healthy in Pakistan; Indian market slow
Prices for shredded steel scrap imports into Pakistan increased in the week to Friday July 9, supported by higher trading activity compared with India, sources have told Fastmarkets.
Fastmarkets calculated its weekly steel scrap, shredded, index, import, cfr Port Qasim, Pakistan, at $547.34 per tonne on July 9, up by $7.83 per tonne from $539.51 per tonne on July 2.
Deals for the material have been heard at $545-550 per tonne cfr this week, up compared with transactions heard at $537-540 per tonne cfr a week earlier.
Market sources estimated achievable prices for shredded scrap at $540-550 per tonne cfr and an offer was reported at $548-550 per tonne cfr.
Good demand for ferrous scrap was supported by re-stocking at mills and a recovery in rebar prices, sources said.
“While India is very quiet, Pakistan seems to be in a better position to pay higher prices for scrap because local finished steel products are doing well,” a trader said.
Fastmarkets’ calculation of the steel scrap shredded, index, import, cfr Nhava Sheva, India, was $536.52 per tonne on July 9, up by $1.36 per tonne from $535.16 per tonne on July 6, and up by $3.08 per tonne from $533.44 per tonne on July 2.
Only one deal for 2,000 tonnes was reported on Friday, at $534 per tonne cfr.
A few offers have been heard at $535-545 per tonne cfr. Market sources estimated achievable prices at $534-540 per tonne cfr.
Several market sources also said that buyers’ price ideas and bids have been substantially below $500 per tonne cfr.
“There is almost no activity,” another trader said. “Indian mills are not accepting current prices because they have trouble with both production and prices for finished steel. I think they will not buy any material for some time - maybe they have material for a couple of weeks in their stocks. But they will return to the market sooner or later, and they will have to pay what the sellers ask.”
Fastmarkets’ weekly price assessment for steel scrap, HMS 1&2 (80:20 mix), import, cfr Nhava Sheva, India, was $440-480 per tonne on July 9, up from $430-465 per tonne on July 2.
The assessment was based on achievable prices estimated by market sources and offers of material from the UK and the United Arab Emirates.