South Asia: Ferrous scrap market remains slow amid small-parcel containerised deals
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The South Asian ferrous scrap market continued to remain slow while some deals were concluded into India, Bangladesh, and Pakistan in containers. This ensured an inflow of scrap as global ferrous scrap prices continued to trend lower after a recent Turkish deal at lower prices.
India
In India, offers for shredded scrap from Europe to Mumbai were heard at around $435-440/t CFR. The Indian domestic market showed a downtrend because of sluggish demand for finished steel, especially in the secondary sector. Participants are waiting for clearer correct price directions. Hence, buyers are retaining bids.
"Shredded from the US was available at $435/t. However, no other scrap was available at a low price," said a source. "Dubai offers are at $425/t CFR India but no buyer seemed interested," he added.
"Indicative offers for India can be around $435-440/t for shredded from Europe and HMS (80:20) from Europe is at $415-420/t CNF Mumbai," another Indian trader source informed.
Pakistan
Liquidity issues in the local market continued to be a major problem in the Pakistani ferrous scrap market. Moreover, difficulties in opening new letters of credit (LCs) from banks persisted. Nevertheless, some deals in containers were heard at lower prices recently.
"Offers for shredded of UK origin were at $440/t CNF Qasim but remained unsold today. Trades happened earlier this week at $445/t. Around 500-1,000 t shredded scrap has been booked at $445/t. The total quantity was between 500t and 1,000 t earlier this week," a Pakistani trader informed.
Bangladesh
A deal was concluded at lower prices yet offers remained unchanged for the day in the containerised market. For bulk too it was largely same as market participants continued to go slow amid unclear price direction and unpredictable global trends.
"I heard Australian HMS 80:20 sold at $426/t yesterday in Bangladesh," mentioned one a Bangladeshi trader.
Turkiye
Global price setter Turkiye saw a continuous drop in scrap prices. Buyers seek further decline in import ferrous scrap prices, citing weak finished steel demand and sales as major factors. Recent deals heard from the US were at $397/t comprising HMS(80:20) in bulk on CFR Turkiye basis.
Recent deals
Around 250 t of Middle East-origin HMS(90:10) has been booked at $435/t CFR Nhava Sheva.
A parcel of 1,000 t UK-origin shredded material was booked at $440/t CFR Pakistan recently.
2,000 t of Australian HMS(80:20) scrap has been booked at $426/t CFR Bangladesh.Price assessments
- Europe-origin shredded scrap offers into India stood at $435/t CFR Nhava Sheva, down $3/t d-o-d.
- UK-origin shredded scrap prices into Bangladesh stood at $460/t CFR Chattogram, unchanged d-o-d.
- UK-origin shredded scrap prices in Pakistan stood at $440/t CFR Qasim, down $5/t from yesterday.
