SOUTH ASIA STEEL SCRAP: Prices rise on new trades

Prices of shredded steel scrap imported into India and Pakistan have risen following fresh purchases on the market, sources told Fastmarkets on Friday June 11.

Fastmarkets’ steel scrap shredded, index, import, cfr Nhava Sheva, India was $516.47 per tonne, down from $520.54 per tonne on June 8, but up week on week from $509.50 per tonne on June 4.

Three deals were heard at $515 per tonne in the week to June 11, up from $507-510 per tonne in deals heard the previous week, while offers were reported at $525 per tonne.

Turkey stepped back into the deep-sea market at higher prices after a recent purchasing hiatus, which supported the Indian scrap market.

Fastmarkets’ daily index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey was $510.55 per tonne on June 11, up by $15.28 per tonne from $495.27 per tonne one week earlier.

While India is relaxing its coronavirus restrictions in many states and easing oxygen mandates, it will take time for mills to return to full production and the recent price volatility is making buyers nervous about restocking, sources said.

“If prices go up, then down and then up, mills will be waiting for stability. Prices are moving up but how long will the market be sustainable for? The market gets nervous when prices go above a certain level and that’s understandable,” a trader said.

“It’s not just a price, it’s the availability and who’s holding what kind of material. It’s a bigger issue [than price], it’s a big challenge. People don’t have material to offer,” a mill source said.

Fastmarkets’ weekly price assessment for steel scrap, HMS 1&2 (80:20 mix), import, cfr Nhava Sheva, India was $465-485 per tonne on June 11, up from $455-480 per tonne the previous week.

Offers were heard at $465 per tonne for UK material, while two deals were heard for HMS 1 at $492 per tonne for Middle East origin material, cfr Mundra, at 500 tonnes and 1,000 tonnes.

Pakistan
In the Pakistan market, prices rose following another round of increases from rebar producers, sources said.

Fastmarkets calculated its weekly steel scrap, shredded, index, import, cfr Port Qasim, Pakistan at $525.03 per tonne on June 11, up from $514.26 per tonne on June 4.

Deals were heard at $520 per tonne and $525 per tonne with additional market chatter of $530 per tonne close to the end of the week, up from a deal done at $500-518 per tonne the previous week.

Offers reported to Fastmarkets were as high as $535-538 per tonne on Friday.

Rebar prices for various Karachi-based producers were 144,000-146,500 Pakistan rupees ($916.23-931.13) per tonne, an increase of 3,000 rupees, Fastmarkets heard.

Despite this, buyers were reluctant to purchase finished steel due to Pakistan’s budget announcement, which came late on June 11, sources said.