SOUTH ASIA STEEL SCRAP: Shredded crosses $400/t mark

The price of shredded steel scrap imported into India and Pakistan crossed $400 per tonne on Friday December 11 as a result of high international prices and tight shipping availability, sources told Fastmarkets.

Fastmarkets calculated the steel scrap, shredded, index, import, cfr Nhava Sheva, India at $401.81 per tonne on Friday, up from $380.65 per tonne one week earlier.

Deals were heard at $390 per tonne and $400-405 per tonne for shredded material, up from $380 per tonne last week.

Offers were as high as $410 per tonne this week, up from $375-380 per tonne the week before.

A rising international market has continued to support the key global scrap markets, in addition to the ongoing poor availability of shipping containers and increased shipping freight rates.

Fastmarkets calculated the index for steel scrap, HMS 1&2 (80:20 mix), North Europe origin, cfr Turkey at $392.66 per tonne on December 11, up from $348.61 per tonne on December 1.

“The markets are sky rocketing, but [domestic] scrap turns out cheaper,” a buyer said.

“It’ll be worse next year as shipping freights are up for January. Towards Christmas time, yards will be closing, with small yards clearing out before they close,” a trader said.

“The increase in freight has the biggest role to play in the price hike. There is increasing demand, especially from countries like Turkey, Pakistan and Bangladesh. Indian demand is positive, although it slowed down a bit after the festival season. The increase in ferrous price is reflecting in finished prices but December should be low in demand month,” a mill source said.

The weekly price assessment for steel scrap, HMS 1&2 (80:20 mix), import, cfr Nhava Sheva, India was $360-380 per tonne on Friday, up from $345-360 per tonne in the previous week.

UK-origin HMS offers made up the bottom end of the range, with Middle East-origin and Australian material making up the top end.

Prices were sky rocketing, with some UK yards not quoting due to a lack of clarity for availability and not able to supply containers, a second buyer said, adding that Indian demand was being supported by government expenditure for infrastructure projects.

Fastmarkets calculated the steel scrap shredded, index, import, cfr Port Qasim, Pakistan at $403.39 per tonne on December 11, up from $380.63 per tonne on December 4.

Deals for shredded material were heard at $400 per tonne for UK material, $400-405 per tonne and $410 per tonne, up from a deal level of $378-380 per tonne last week.

“The Pakistan market has moved up, but there are not many offers available. Local rebar producers are also increasing the finished prices,” a trader said.

This week, rebar prices moved up by $18 per tonne due to an increase in raw material prices.

What to read next
Feedback was received during the consultation period of an immaterial nature that would not impact the result of price assessments. Therefore, while no material changes will be made to the methodologies at this stage, clarification indicating that the Effective List price treats changes in annually established discounts during the year as changes in the price. […]
Fastmarkets is inviting feedback from the industry on the pricing methodology for European Packaging Paper and Board as part of its announced annual methodology review process. This consultation, which is open until August 31, 2024 seeks to ensure that our methodologies continue to reflect the physical market under indexation, in compliance with the International Organization […]
In the methodology price specifications, the shorter names PIX Testliner GCC and PIX Fluting GCC will be used instead of PIX Containerboard Testliner Delivered GCC USD/tonne and PIX Containerboard Fluting Delivered GCC USD/tonne. No other changes have been made to the index methodology. For comments and queries, please email, indicating “PIX Packaging GCC” in […]
Fastmarkets has corrected its MB-ALU-0002 alumina index, fob Australia and its MB-ALU-0010 alumina inferred index, fob Brazil, which were published incorrectly on Monday July 8 due to an error.
Fastmarkets has corrected the rationales for its MB-LI-0033 lithium hydroxide monohydrate LiOH.H2O 56.5% LiOH min, battery grade, spot price cif China, Japan & Korea and MB-LI-0029 lithium carbonate 99.5% Li2CO3 min, battery grade, spot prices cif China, Japan & Korea, which were published incorrectly on Tuesday July 9.
From price adjustments in the GCC to shifts in consumption patterns, learn what's driving the latest Middle Eastern containerboard price movements in June