Prices for shredded steel scrap imported into Pakistan and India increased on Friday October 29, despite concerns over rising freight costs, sources have told Fastmarkets.
Pakistan
Fastmarkets calculated its weekly
steel scrap, shredded, index, import, cfr Port Qasim, Pakistan, at $563.74 per tonne on Friday, up from $557.48 per tonne on October 22.
Deals were heard at $560-565 per tonne this week, up from deals at $552-560 per tonne last week.
Market sources in India and Pakistan were also concerned about a rise in freight rates that will be imposed during November, with some estimating an increase of as much as $300 per tonne for each container.
Freight rates to both destinations from the UK were similar, with the cost of freight being $80-85 per tonne for shredded scrap.
India
Fastmarkets' calculation of the
steel scrap, shredded, index, import, cfr Nhava Sheva, India, was $551.16 per tonne on October 29, compared with $548.13 per tonne on October 26, and $548.42 per tonne on October 22.
Deals were heard at $550-552 per tonne this week, on a par with deals last week, although offers were as high as $555 per tonne cfr.
The Indian market was said to be relatively subdued this week due to low demand ahead of the Diwali religious festival, which will take place next week.
Many workers will take time off for that, so purchasing requirements will be low.
"India is out the market because next week is mostly holidays. Mills are slow [and] workers are on holiday. Demand for finished steel products is weak," a seller said.
"The market has weakened further, due to coal [supply] issues in China, but more coal is expected to become available," a buyer said. "India is not interested in buying [scrap], because there is a disparity between import and domestic prices."
Fastmarkets' weekly price assessment for
steel scrap, HMS 1&2 (80:20 mix), import, cfr Nhava Sheva, India, was $480-500 per tonne on Friday, unchanged week on week.