South Asia: Ferrous scrap market remains slow amid limited buying appetite

The South Asian ferrous scrap market remained slow as major buyers in India did not opt to procure at current offers. In fact, they preferred to wait and watch. However, limited deals were heard from the Middle East by Indian buyers at nominal quantities.

Indian domestic ferrous scrap prices as well as finished steel prices showed downward movement d-o-d.

Most of the induction furnace units based in different regions said that finished steel prices might see a slight downward correction due to build-up of stocks. Moreover, import prices are not viable at the moment due to reasonable domestic prices.

Pakistan and Bangladeshi participants remained silent as no major activities and price revisions were heard in the respective markets. Meanwhile, offers remained higher than last week's closing.

"The Indian ferrous scrap market is likely to remain slow as no major booking has been heard currently from buyers. Some enquiries are going on at present where the bids are low. Buyers expect further reduction in prices," said a trader from India.

Recent deals:

Around 1,000 t of Middle East-origin HMS (80:20) scrap has been booked at $450/t CFR Nhava Sheva.

Around 650 t of Middle East-origin HMS(90:10) scrap has been booked at $465/t CFR Nhava Sheva.

Price assessments

• Europe-origin shredded scrap offers into India stood at $475/t CFR Nhava Sheva, unchanged d-o-d.
  
  
• UK-origin shredded scrap prices stood at $515/t CFR Chattogram, the same as the last offers.
  
  
• UK-origin shredded scrap prices stood at $490/t CFR Qasim, unchanged from previous offers.