South Asia: Bid-offer disparity clouds imported scrap market

The South Asian ferrous scrap market commenced with uncertainties as bid-offer disparities arose. Sellers sought higher prices due to supply constraints, while Asian buyers hesitated in accepting these rates, opting to monitor the unclear price trends influenced by Turkish bookings.

Market Overview

India: Shredded offers for India were set at $425-430/t CFR. However, limited interest was seen at this level, with bids mainly hovering around $410-412/t CFR due to subdued buying enthusiasm. This divergence between bids and offers emerged due to the prevailing situation.

Recent Turkish bookings led to an upward trend. Negotiable prices for deals are expected this week.

Expected price hikes in India's domestic steel market may positively impact scrap prices too. While moderate trading occurred in the Mandi (Gobindgarh) scrap market, both mills and scrap traders foresee a robust price rebound in the current week. Steel scrap availability was good.

Pakistan: The imported ferrous scrap market in Pakistan was quiet due to Independence Day observance. Previous deals revealed buyer expectations and price indications of $430-435/t recently. Some deals were concluded at $425/t last week, with the potential to open at $435/t soon.

Supply shortages are pushing prices upwards. Due to the long weekend holidays, no new deals were reported, as per market sources.

"Shredded offers were heard at $430/tonne. Some deals were done at $425/t levels last week. Offers may open tomorrow at $435/t levels," a major mill source from Pakistan informed.

Bangladesh: The imported market in Bangladesh remained subdued with limited activities. Indicative prices saw a slight increase of $5-10/t compared to the previous closing prices. Demand for local rebar in the finished steel market was slow, while shipyard scrap prices remained stable at BDT 60,500/t.

Turkiye: Imported ferrous scrap prices in Turkiye gained momentum. A recent deal involving US-origin scrap resulted in a price hike of almost $10/t from previous quotes. A US-origin cargo, comprising 23,000 t of HMS (80:20), 5,000 t of shredded, and 2,000 t of bonus scrap was booked at $367/t, $387/t, and $387/t by an East Marmara-based mill on CFR Turkiye basis. This transaction, scheduled for late August shipments, indicated positive momentum in the Turkish market.

Recent deals

• Approximately 3,000 t of Europe-origin shredded was sold at $425/t CFR Qasim.
  
  
• Around 1,000 t of Hong Kong-origin PNS was booked at $448/t CFR Chattogram.
  
  
• About 25 t of UK-origin HMS (80:20) scrap was sold at $405/t CFR Nhava Sheva.
  
  

Price assessments

• India: UK-origin shredded scrap offers were at $426/t CFR Nhava Sheva, inching up $5/t.
  
  
• Pakistan: UK-origin shredded scrap offers were at $430/t CFR Qasim, up by $6/t from the last closing.
  
  
• Bangladesh: Offers for UK-origin shredded scrap were at $435/t CFR Chattogram, up by $5/t from last Friday.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices increased by $7/t, to $364/t CFR Turkiye.
  
  

Outlook: A positive price trend is expected due to an expected increase in demand in the finished steel market and a surge in Turkish bulk bookings, which will likely drive prices higher.