The subcontinent recycling market has witnessed some correction in prices, but the prevailing prices are still relatively high given the fact that they have already climbed to unprecedented levels this year. The owners and end buyers are both gauging the market sentiments and holding back their offers till few deals finalize and define the direction of the prices. The ongoing scarcity of tonnage will ensure that the prices remain range-bound despite apprehension from end buyers in offering prices at these levels.
Iron ore prices fell sharply this week amid more expectations for crude steel production curbs in China for the remainder of the year as China prepares for Winter Olympics and air pollution is in focus. Additionally, the steel mills of China are undergoing environmental inspections from Government to check their pollution levels which has led to many mills suspending their operations for the time being.
Oil prices have rebounded this week backed by the optimism about global economic growth and supply concerns as Hurricane Ida shuts about 80% of the Gulf of Mexico’s output.
Global stock markets rose to a record high as the investors around the world are closely watching data releases from the U.S. this week that will shape views on the outlook for Federal Reserve Monetary policy.
The demand from end buyers of India remains stable with much preference for smaller tonnages as the larger assets require heavy risk appetite and higher bank limits. With a steep rise in prices this year, the end buyers are facing issues in securing bank limits for such increasing amounts.
The ship plate prices in domestic market have slightly softened but the market participants remained positive due to strong economic indications from domestic market and stable demand outlook.
India proposes to impose retaliatory additional import duties on selected steel products from the European Union (EU) till the bloc removes import quota restrictions on Indian steel.
The market remains range bound with lesser enquiries coming from end buyers due to the prevailing concern regarding the direction of prices. There are buyers in the market but very few are ready to move upwards in their offer prices as per the expectations of the ship owners.
Imported scrap market remains stable in Bangladesh as mills continue to place orders but the delayed delivery of import orders due to scarcity of containers is still a huge matter of concern.
The price of ship plates is expected to get a boost now as all major steel mills have revised their prices this week due to shortage of raw materials. Many ship recyclers have paused their sales to see the reaction of the market and evaluate the direction of prices.
The steel market participants in Pakistan have accepted the fact that the tax changes are here to stay and hence there’s a temporary lack of enthusiasm in the domestic steel industry resulting in lesser trading activities.
The Pakistani Rupee (PKR) continues its downward trend, currently trading at PKR 167.20/USD causing a substantial difference for those end buyers who have finalised deals and are currently due to make payment at these soaring rates.
There are increasing number of inquiries for tonnage from the end buyers of Aliaga which shows healthy appetite in the domestic market.
No new vessel has arrived in Aliaga this week.
The imported scrap offers, and domestic scrap market remained stable throughout this week backed by stable domestic demand.
Turkey’s economy rebounded powerfully in the second quarter after a sharp slowdown caused by COVID-19 restrictions. However, the boom in economic activity is feeding into double-digit inflation which does not lead to sustainable and comprehensive growth.