India: BigMint captures key ferrous, non-ferrous scrap market sentiments and trades at MRAI flagship summit

MRAI's 12th International Conference in Jaipur, hosting over 3,000 delegates and 200+ exhibitors, saw market interactions and deals.

In discussions with various market participants and attendees, BigMint gathered insights into recent deals across ferrous and non-ferrous scrap segments, as well as prevailing market sentiments.

Ferrous scrap market

India & Turkiye bulk scrap trades

• A bulk scrap cargo was heard booked by a major Indian scrap trading house yesterday from the US, comprising around 30,000 t of mixed scrap, including 20,000 t of shredded at $372-375/t, 5,000 t of bonus at $378-380/t and 5,000 t of HMS at $365-368/t.
  
  
• Meanwhile, the bulk scrap benchmark market, Turkiye, witnessed a slight uptick in recent deals mostly finalised at $340-342.5/t CFR for the Aegean region, up from the previous $331-337/t.
  
  
• A UK-origin HMS (80:20) cargo was sold at $340/t, EU-origin HMS (80:20) at $340/t, another EU-origin HMS (80:20) and Bonus/PNS at $342.5/t, $362.5/t. A US-origin bonus cargo was acquired at $362.5/t.
  
  

Containerised scrap trades

• In containerised deals for India, UK HMS (80:20) with 2% impurities was sold at $350-355/t for 1,000 t CFR West Coast India.
  
  
• Another deal from Central America was heard concluded for HMS (80:20) at $355/t of around 500 t (25t loading) CFR West Coast India.
  
  
• Around 1,000 t of shredded scrap from the US was sold at $375/t on a CFR Pipava basis, while 1,000 t of HMS 40ft from Chile was sold at $360/t CFR Pipava.
  
  
• Around 1,000 t of UK-origin PNS was sold at $370/t on a CFR west coast India basis.
  
  

Market commentary

Current workable levels for HMS 1 are at around $360-365/t from Central America, while open-origin HMS 80:20 is being offered at $350-355/t.

There was a bid-offer disparity with a shredded scrap offer at $365-370/t, while counter bids were placed at $360/t.

The majority of the payment terms from Indian buyers are mostly CAD, with very few transactions on an LC basis.

"As prices near their bottom, we are seeing signs of improvement in the market, especially with strong rebar sales. Traders are anticipating restocking activity, and if the upcoming Budget focuses on infrastructure spending, we could see further support for the rebar market post-February," a scrap trader mentioned.

As per a few mill-side market participants from the ferrous scrap segment, no purchases have been made recently as inventory levels remain adequate but now increasing inquiries.

Bangladesh

For Bangladesh, several containerised deals were heard concluded.

• Approximately 3,000 t of bonus scrap from Malaysia was sold at $382-390/t CFR Chattogram, while around 1,000 t of shredded scrap from Malaysia was sold at $375/t CFR.
  
  
• Around 1,000 t of shredded scrap from the US was sold at $366/t CFR, while 1,000 t of PNS from the US sold at $368-372/t. Additionally, 1,000 t of PNS from Peru was sold at $380/t CFR Chattogram.
  
  
• 3,000 t of shredded from Australia was sold at $385/t, while 2,000 t of shredded from New Zealand was sold.
  
  

Market commentary

The LC situation in Bangladesh has taken a positive turn, with a steady flow of deals over the past week. However, suppliers are growing cautious due to payment defaults and delays from buyers, keeping the bid-offer gap wide as buyers struggle to meet their target prices.

Meanwhile, the imported scrap market is showing signs of life, with mills actively evaluating offers and securing cargo ahead of Ramadan.

A representative from a major Chattogram-based mill commented on the current market scenario, stating that after a period of slow activity due to high inventories, and their plants are now operating at full capacity (2.4 - 2.5 mnt), signaling a recovery.

"While the market may remain slow until March, there is cautious optimism that, post-Ramadan, the market will experience a more substantial rebound," he added.

Pakistan

The containerised scrap market in Pakistan is slow, but a rise is expected in mid-February before Ramadan, as imported material is anticipated to arrive during the holidays.

Due to a shortage of domestic scrap, there has been a slight increase in imported scrap prices, which are now being offered at $380-385/t.

Non-ferrous scrap trades

• As per another overseas nonferrous scrap supplier, engine scrap with 40% recovery from South America was sold at $1885/t on CFR Mundra. He also mentioned that Tense scrap from South Korea sold at $1890/t CFR Chennai
  
  
• Another market insider, around 100 t of Aluminium Taint Tabor, cut and sheared, sold at $1890/t from the UK with a 10% attachment on a CIF West Coast India basis.
  
  
• Around 50 t of brass honey from the UK sold at 3M 60% ($5410/t) on a CIF West Coast India.
  
  
• US-origin talk from the US sold at 3M LME 53.5% ($4800/t) on a CIF West Coast India basis.
  
  
• Around 70 t of Aluminium 6063 extrusion from the UAE sold at $2430/t on a CIF West Coast India basis.
  
  

Market commentary

As per market participants at MRAI, the market remained weak today, with LME declining, adding pressure across segments. Despite this, TT extrusion trades were concluded at higher levels, particularly from the UK, exceeding the market range by $40-45/t.

The copper motors export ban is still pending, with clarity expected in the upcoming budget, while uncertainty remains over the removal of the 2.5% copper scrap import duty.

In the aluminum sector, plant owners and wire rod manufacturers are actively buying scrap, especially from South India, where shredded TT and clean extrusion scrap bring better returns.

In the local market, falling prices have led to more purchases by ingot makers as imported scrap prices for select grades like shredded TT and extrusion are seeing premiums.

Similarly, Middle Eastern demand remains firm, keeping their export prices elevated. However, bid-offer disparities continue, and in Thailand, buyers prefer importing extrusion scrap at $50-60/t lower than in other regions.

One of India's major primary aluminium manufacturers is setting up a UBC plant in Odisha.

They are quoting for UBC clean scrap at low levels of INR 157/kg Ex, requiring bulk material. However, traders are offering material at INR 164/kg, creating bid-offer disparities due to a material shortage.

Non-ferrous Alloy ingot market

A major North Indian alloy ingot manufacturer recently sold ADC12 to Japan at $2,400/t. However, Japan's demand remains weak, with very few deals taking place.