Downtrend in South Asian scrap markets continues with onset of monsoons

The imported scrap markets in South Asian countries, particularly India and Bangladesh, observed a downtrend with lower transactions and sluggish demand, attributed to the onset of monsoons. In India, both imported and domestic scrap prices have dropped, while in Pakistan the market has been quiet with limited letter of credit (LC) arrangements.

India

Prices of imported scrap in India have remained bearish, with sellers quoting around $404-408/t for European shredded scrap due to concerns about sluggish demand from buyers. The domestic scrap market in western India has also weakened significantly, with prices dropping by INR 200-700/t.

"India is a prominent destination for western countries, while South American materials are preferred by Bangladesh," an overseas trader informed.

Pakistan

The imported scrap market in Pakistan has been quiet, with no major deals reported. Current market conditions suggest that Pakistani buyers have to wait for banks to allow them to open LCs, which is currently difficult.

Offers for European shredded scrap for late August and early September shipments are in the range of $415-420/t CFR Qasim.

Bangladesh

The market condition in Bangladesh remains uncertain, with recent deals being concluded at comparatively lower prices.

Offers/indicatives for containerised shredded and HMS (80:20) of UK/Europe origin range within $436-442/t and $408-412/t CFR Chattogram.

Turkiye

Turkish mills are closely monitoring the market, hoping for some price concessions. The anticipation of firm pricing arises from reconstruction activities in southern Turkey, which requires rebar. This has instilled some optimism in manufacturers.

Recent deals:

• Approximately 300 t of West African HMS (80:20) scrap were booked at $405/t CFR Nhava Sheva.
  
  
• Around 1,000 t of UK-origin shredded scrap were sold at $410/t on CFR West Coast India.
  
  
• Approximately 1,000 t of HMS (80:20) scrap were booked at $395/t, and 500 t of turning scrap were booked at $370/t CFR West Coast India.
  
  
• 600 t of Brazilian boring scrap were booked at $350/t , followed by 500 t of Canadian HMS (80:20) at $390/t and 1,500 t of German turning boring scrap at $362/t CFR Chennai.
  
  

Price assessments:

India: UK-origin shredded scrap offers stand at $410/t CFR Nhava Sheva, down by $2/t.

Pakistan: UK-origin shredded scrap offers are at $415/t CFR Qasim, down by $1/t.

Bangladesh: Offers for UK-origin shredded scrap were at $442/t CFR Chattogram, largely unchanged.

Turkiye: US-origin HMS 1&2 (80:20) prices stand at $376/t CFR Turkiye, stable d-o-d.

Outlook

Sluggish market sentiments are likely to persist, impacting prices and transaction volumes. However, there is a glimmer of optimism for Turkish manufacturers as reconstruction activities will likely prop up demand. Looking ahead, the imported scrap markets in South Asian countries, particularly India and Bangladesh, are expected to remain under pressure due to the onset of monsoons.