The subcontinent market is clouded with uncertainties arising from spike in coronavirus infections and extension of lockdown measures. Although the recycling market did not witness any sharp movement on either side, this quarter will most likely witness high volatility as economic developments remain uneven across countries and sectors, with the services sector being more adversely affected by the restrictions on social interaction and mobility than the industrial sector.
Iron ore and Steel prices around the world are touching unprecedented highs due to strong growth in steel demand from China, USA, Europe, and other emerging markets with global recovery from a year-long slowdown and a relatively constrained supply.
Although China considers decreasing steel export tax rebates to reduce steel exports and indirectly discourage steel production, the Chinese exports would still be economic and competitive given the current tight supply and soaring prices of steel globally. China’s plate export market remained inactive over the past week due to these sustained uncertainties over the export tax rebate for steel products and the mills are issuing high offers to hedge against the possible removal of rebate.
Today, as the world mourns the sad demise of His Royal Highness Prince Philip, Duke of Edinburgh, our thoughts are with the Royal Family and the whole of Britain at this profoundly sad time.
The demand from end buyers of India has slightly gone down this week due to trembling INR against USD. A sharp spike in Coronavirus infections and partial lockdown in various parts of the country has made the markets nervous about the pace and strength of economic recovery.
India battles an alarming record rise of COVID-19 infections leading to shortage of oxygen due to ever increasing need of oxygen for medical usage. Authorities have directed gas producers to reserve 70% of total production for Medical use and allocate only 30% for industrial usage.
Bangladesh going into another week-long National lockdown with stricter norms from April 14 and the upcoming Ramadan season is expected to have an impact on the market even though there has not been any significant movement so far. The prices remained same week-on-week and the end buyers are offering competitive prices for acquiring tonnage.
All government and non-government institutions, except for emergency services will be closed across the country from April 14. All public transport, except for ambulance services, will remain closed during this time
Major Steel mills have booked bulk cargoes from the U.S. and Australia to restock ahead of Ramadan holidays.
Prices in Pakistan are stable and end buyers are more interested in small to mid-size units with prompt delivery. Local prices of scrap from demolition vessels are firm as the domestic demand remains promising backed by strong fundamentals and appreciating currency. The Pakistani rupee remained strong throughout the week and is currently trading at PKR 152.7/USD.
A Russian delegation on Tuesday agreed to submit proposals for the modernisation of Pakistan Steel Mills (PSM) as Pakistan and Russia agree to build economic, energy and defence ties in a 2-day visit of Russian Foreign Minister to Pakistan.