The subcontinent recycling market is going strong even after some corrections witnessed in the global scrap prices as the persisting lack of tonnage has encouraged end buyers to secure the available units at prevailing prices. Due to ongoing festivals, Indian buyers have remained muted this week giving more opportunities to their counterparts in Bangladesh and Pakistan. Bangladesh is leading the price charts due to the rising demand for steel in the region which has kept the ship plate prices firm.
The European Commission is scheduled to publish a draft of the final adoption of the EU waste shipment regulations (WSR) review on 17 November, with the Draft expected to include some form of ban on ferrous and non-ferrous scrap exports. The two types of bans on scrap exports most likely to be implemented are a total ban on exports to countries outside the EU, and a ban on exports to non-OECD countries that do not meet EU waste processing standards.
The COP26 is bringing news of welcoming changes every day as the conference proceeds with countries pledging to minimize the use of fossil fuels. Over 40 countries have committed for the first time to phase out and not build or investing new coal power. U.S. President and his European Commission counterpart struck a bilateral Green Steel deal which reduces mutual steel import tariffs but retains them on imports from other states which fail to hit standards for low-carbon steel production.
This week saw limited transactions in most markets as the industries remain closed due to Diwali festivities. The prices are expected to hover at the prevailing levels in the upcoming week as the demand for steel remains strong.PM Modi announced India’s vision to reach net-zero emissions by 2070 at UN Cop26. For Steel sector, he stated that Cost will remain a major factor in thejourney towards lower emissions. The best route to near net-zero emission is hydrogen iron making but there are a lot of challenges around its cost,availability, and possibility of replacing fossil fuels completely in the years tocome.
The impact of rising prices of scrap globally in the previous weeks is now being reflected in the market as the end buyers have shown increasing interest to offer competitive prices leaving behind the resistance which was being shown in the previous month after the iron ore prices nosedived.
The soaring raw material prices have forced major Steel mills to increase rebar prices further by about USD 20-25/MT.
The imported scrap prices have witnessed a minor correction of about USD5/MT this week after a series of continual rise since past two weeks.
The market in Gadani remained range bound this week but the buyers have not shown any major interest in the available units. The domestic steel market is improving which had led to major mills increasing their offer prices this week. It is expected to reflect in the prices of ship plates in the coming week.
The imported scrap prices have corrected by USD 10/MT as the traders are placing fewer orders due to the elevated levels of scrap prices globally. T
he Pakistani Rupee is holding its strength this week after touching historic high of 175 in the previous week. It is currently trading at PKR 170.05/USD.
Market activities remained limited this week due to the Republic day holidays.
The imported scrap prices remained stable but the direction of price movement is not certain as there has been reduced demand from the Mills in the previous week due to dull finished steel demand in both the domestic and overseas markets.
The Turkish lira weakened as investor concerns persisted over the combination of lower rates and higher inflation, and after the government denied the rumours of Finance Minister’s resignation. It is currently trading at TL9.72/USD.