The market has remained steady despite the surging COVID-19 cases and the traditional slowdown during the holy month of Ramadan. With the freight rates going strong for Containers and Bulkers, the supply of tonnage is falling behind the demand which has led to prices reaching higher levels week on week.
Surging global steel demand has resulted in steel prices reaching their highest level since 2008. China has stepped up its involvement in the export market this year as the demand and price recovery in overseas markets makes Chinese steel competitive again. Market sources claim that a zeroing out of the China’s rebates will be announced next week and take effect from 1st May. The premium for HRC in overseas markets is driving prices more than the difference due to tax changes because buyers can absorb the additional cost.
Oil prices surge as this week showed strong global demand recovery, particularly in China and the United States while the U.S. crude inventory is sharply declining.
India has crossed the grim milestone of over 2 lakh COVID-19 cases being reported in a day as a strong wave sweeps throughout the country. The situation has reached frightening levels and tough restrictions are in place with weekend curfews and weekday restrictions being imposed by the administration, to check the spread of Coronavirus.
The recycling yards of Alang will exhaust their oxygen inventory within the next week and it is highly implausible to procure supply of oxygen in the current scenario of shooting COVID-19 cases across the country. Despite the challenging times, the end buyers are showing interest and offering good prices for available tonnage specifically eyeing the vessels meant for green recycling.
India is facing a severe shortage of hospital beds, oxygen supply and medication and the government has begun using schools, sports complexes, and banquet halls as temporary hospitals to provide treatment for the soaring number of patients needing medicines and treatment.
Prices and demand from end buyers remain stable despite strict lockdown and burgeoning coronavirus cases. Among the subcontinent market, Bangladesh is still leading the price chart offering highest prices on all vessels being floated in the market. The yards are operating with very limited working hours and this may lead to piling up of inventories in the recycling yards.
With strict restrictions in place to combat the deadly wave of coronavirus, all festivities for the Ramadan month have been called off and people are allowed to step out only to buy food and medicines or for medical emergencies.
Demand remained buoyant and the end buyers showed active interest to secure tonnage by offering competitive prices.
Snapping its winning streak against the USD, Pakistani Rupee weakened by over 50 paise this week and is currently trading at PKR 153.24/USD.
The Pakistan Association of Large Steel Producers (PALSP) has urged the government not to increase the cost of electricity for the steel sector, warning of disastrous consequences for the steel industry of the country. The cost of electricity for industries is likely to jump by 36% as the government is mulling over an increase of minimum Rs 5.65 per unit in the power tariff before October.
One mid-sized unit has arrived from Canada this week under EU regulations.
Import scrap prices have softened by about USD 9/MT whereas the domestic prices have remained stable week on week.
Turkey’s Central Bank left its benchmark interest rate unchanged in its first meeting under the newly appointed governor.
Turkey reported almost 60,000 COVID-19 cases on Wednesday, the highest single-day figure since the start of the pandemic leading to stricter restrictions, now the weekday curfew will start at 7.00 p.m. instead of 9.00 p.m. and last until 5 a.m., during which inter-city travel will also be banned except for necessary and urgent situations.