South Asia: Ferrous scrap market sees slow start to week post-Eid

The South Asian imported scrap market experienced a slow start to the week as key markets such as Bangladesh, Turkiye, and Pakistan were still in holiday mode, leading to a stagnant scenario of limited offers and deals.

Meanwhile, Indian buyers are competitively observing the market to secure a few more deals as prices here are on a downtrend due to lesser demand and comparatively lower prices of metallics other than scrap.

India

In India, buyers are closely monitoring the market trends to secure additional deals, as scrap prices in the country continue to decline due to reduced demand and lower prices of alternative metallics. Containerised shredded scrap offers for India ranged between $415-420/t. The domestic market also witnessed a significant INR 200-800/t drop in scrap prices.

An Indian buyer source said: "There have been no changes in prices w-o-w. Shredded was flat at $415-420/t, and HMS was at around $400/t levels."

A trader from India, commenting on the current scenario, said, "The market is gloomy in India, with domestic prices also falling."

An overseas seller mentioned that major steel mills in India may make more bulk bookings if the price downtrend continues.

Pakistan

The Pakistani market has only recently opened, with some mills still set to resume operations sometime mid-week. Therefore, there is currently no clarity on current offers. However, shredded scrap is indicated at $420/t CFR Qasim.

New bookings are expected once businesses open up this week, and if the letter of credit (LC) issue with banks is resolved, a source from a Pakistani mill said.

A Pakistani trader said: "Deals are expected now that businesses will open up this week. Banks are still closed and will also open soon."

Bangladesh

After the Eid holidays, no major market activities have been reported in Bangladesh at the beginning of the week. Indicative prices for UK-origin containerised shredded scrap remained at $445/t, while HMS (80:20) was priced at $415/t. Buyers in Bangladesh are likely to make some offers keeping an eye on the upcoming Kanto tender for the month of July.

Turkiye

The Turkish market is experiencing a bearish trend in July, following limited activity towards the end of June due to the Eid holidays. Offers for US-origin HMS (80:20) bulk remained stable with no significant market activities reported at the beginning of the week.

Price assessments-

• India: UK-origin shredded scrap offers stand at $415/t CFR Nhava Sheva, slightly down by $3/t.
  
  
• Pakistan: UK-origin shredded scrap offers stand at $420/t CFR Qasim.

  
  
  

• Bangladesh: Offers for UK-origin shredded scrap remain at $445/t CFR Chattogram, unchanged from the previous closing.
  
  
• Turkiye: US-origin HMS 1&2 (80:20) prices stand at $380/t CFR Turkiye, the same as n the previous offers on Friday.
  
  

Outlook

The market remains uncertain, with major buyers in Pakistan and Bangladesh facing LC restrictions and weaker currency conditions. The global scrap price indicator, Turkiye, remains on the sidelines due to weaker economic conditions. Indian buyers are hopeful of more bulk deals due to the lower prices in the near term.