The subcontinent recycling sector remains stable amid mixed sentiments in the global steel market. Bangladesh is leading the price board this week closely followed by Pakistan, who witnessed a minor drop in the interest levels in comparison to the previous week. India still remains in the third position with its economy gradually gaining the momentum after the ferocious second wave of Coronavirus.
The government of Russia has announced its intention to impose temporary export duties on all steel products at the rate of 15%, but minimum USD 54/MT, effective from 1st August till 31st December 2021. This change is intended to secure the domestic metal prices as the global metal prices continue their rally.
Crude oil prices remain supported by strong demand outlook as major countries are gradually relaxing their mobility restrictions and speeding their vaccination drives.
World’s biggest sporting event, the delayed 2020 Olympics, will open in Tokyo from 23rd July amidst a lot of protests from the residents who are concerned that such a major international event will risk the health of the entire nation.
On this day of Seafarer, we extend our heartfelt gratitude to all our sea-bound colleagues for their hard work and dedication to ensure safe operations and delivery of the vessel. Happy Seafarer’s Day 2021.
Indian market remains silent as recyclers are not bidding aggressively and waiting to get a clear demand and recovery indication from the domestic market before making new purchases.
Domestic demand is expected to recover in July due to the gradual lifting of lockdowns and mobility restrictions, as well as the improving vaccination coverage.
The Delta Plus variant of COVID-19 is currently a cause of concern for India as health experts warn that it is extremely transmissible and could evade both vaccine and infection immunity. Experts warn that it may unleash a third wave in the coming months.
The end buyers of Bangladesh have shown a healthy appetite this week and the market looks promising for the upcoming week as well with several purchase inquiries coming from buyers.
Imported scrap prices have softened by over USD 5-10/MT this week and is expected to come down further.
Domestic demand is slightly under pressure as Government has imposed strict lockdown in several districts from 22nd June to 30th June amid a surge in Coronavirus cases. All government offices are set to remain closed with restrictions on movement, however, essential services including health, utility services and COVID-19 vaccination will continue.
There is a drop in purchase inquiries from Gadani this week as most of the recyclers are busy taking deliveries of their recently concluded deals.
Imported scrap prices have strengthened by about USD 15/MT w-o-w. The shortage of domestic scrap and hike in ship plate prices provide firm support to the imported scrap offers.
Pakistani rupee has devaluated to PKR 158/USD against PKR 153/USD recorded a month ago. This has made the imports costlier and is therefore keeping mills away from booking imported scrap actively.
Major steel mills across Pakistan have raised their prices by USD 30-33/MT in response to the sharp increase in cost of inputs and shortage of supply in market.
Imported scrap prices have softened by USD 5/MT whereas the domestic prices have slipped by USD 10/MT in comparison with the previous week.
The European Commission has opened an anti-dumping investigation into hot-dipped galvanized flat steel from Turkey and Russia. Any negative outcome will strongly affect the Turkish Steel industry as Europe is Turkey’s largest export market.
If the news about Russia imposing export duty on steel comes into effect, it will have a huge knock-on effect in terms of limiting scrap availability to Turkey.
Turkey is in talks with several countries over securing a currency swap agreement to save the Lira from bleeding value against the USD. It is currently trading at TL 8.69/USD.