South Asia: Ferrous scrap market slow amid fewer enquires, stable offers

The South Asian imported scrap market continued to be slow amid some deals from India seen last weekend. Pakistan experienced a slowdown due to LC-related issues. The other major market player, Bangladesh, is not active yet, and so offers remained the same as previous closings.

India

Offers of shredded material were heard in the range of $455-465/t CFR Nhava Sheva. However, deals were heard at lower prices, as per sources. Around 500-1,000 t of European shredded scrap have been booked at $453-455/t CFR. Stocks of raw materials for steelmaking were running low in the domestic scrap market, due to a relative lack of imports in recent weeks. Hence, mills might come back into the scrap import market with inquiries.

Pakistan

Many sellers continued to hold back from the Pakistan import market because of the continuing problems related to financing deals and getting letters of credit (LCs). For the time being, however, the domestic rebar and scrap import markets is very slow and quiet. Offers for the day remained the same as the last closing.

As per sources, some deals were heard last week at $465-472/t and around 2,500 t of shredded scrap have been booked CFR Qasim.

The reason why offers to Pakistan did not decrease along with international prices was that sellers saw little point in reducing prices when the market was slow. Sellers feel that demand might pick up in a matter of a few weeks.

Bangladesh

Ferrous scrap buyers in Bangladesh continued their silence d-o-d as the market remained sluggish at current offers. They might see some prominent deals after the completion of the Ramadan month.

Turkiye

This country is the price setter since it is globally the largest buyer of ferrous scrap. However, Turkish ferrous scrap buyers were silent for the day. Offers remained the same as compared to those pitched at the last closing. However, even at lower prices, deals concluded for materials of Europe and US origins.