South Asia: Ongoing Holidays Keep Imported Scrap Buyers Away

In conversation with industry participants, SteelMint learned that South Asian imported scrap market observed a week of almost silence amid Eid-ul-Adha holidays in Pakistan and Bangladesh while Indian steel mills remained slow on heavy rains and Independence day celebration this week.

SteelMint's assessment for containerized Shredded from UK, Europe and USA stands unchanged at USD 300-305/MT, CFR Nhava Sheva, against last week's report. Few offers even heard at USD 295-300/MT, CFR just to check if buying interest available but no trade was reported.

In the last confirm deal heard, around 3000 MT of Shredded scrap in containers was reported to have booked at USD 314/MT, CFR Vizag. While the next round of booking is expected in the coming weeks as per requirement.

"South Asian scrap buyers likely to return from Eid holidays till 19th August after then clear direction can be observed. Thin trades of Shredded scrap from Europe/UK concluded at USD 303-305/MT, CFR Qasim." Shared a source.

No active HMS offers were heard from Dubai over ongoing holiday mood. Few offers for HMS 1 reported at USD 280-285/MT, CFR and P&S scrap at USD 290/MT, CFR Nhava Sheva.

South African origin HMS 1 offers stand at around USD 290-295/MT, CFR Nhava Sheva. While West African HMS 1&2 (80:20) assessment stood flat at USD 270-275/MT, CFR Goa and Chennai depending upon quality and container size varying from 20-24 MT loading.

A leading steelmaker based in the eastern coast of India heard looking to liquidate its scrap inventory at current market levels on excess material being booked in the earlier tenders concluded for imported Shredded & HMS scrap even at higher prices.

Domestic scrap prices observe volatility on currency depreciation - Indian domestic scrap prices had observed upward movement on jump in semi-finish prices and currency depreciation in the opening of this week. However, weaker demand amid holiday mood pulled prices down again.

The current assessment of local HMS 1&2 (80:20) stands at INR 20,800-21,100/MT (USD 292-297), CFR Mumbai. Chennai based HMS 1&2 (80:20) is assessed at INR 20,300-20,600/MT, ex-works marginally up W-o-W. Indian Rupee has witnessed volatility over this week depreciating to 71.1 levels today from 70.7 levels a week earlier against USD. Notably, Indian Rupee has devalued amid Kashmir tensions by 3.5% in the last two weeks' time.