South Asia: Ferrous scrap market slows down amid weak demand before Eid
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The South Asian imported scrap market remained slow amid a couple of deals from Bangladesh and Pakistan. The Indian scrap market remained rangebound in terms of prices. A major comeback is anticipated after the current pause from participants amid the Eid holidays. This is the reason why they are holding back new bookings this week, sources revealed.
India
Shredded material offers have been heard in the market at $455-457/t at CFR Nhava Sheva. In the domestic market finished steel sales remained slow. This has contributed to the negative price correction in the domestic scrap market.
"Mills slowed down their imports while raising usage of local material such as local scraps, and sponge iron. Local raw material is available. Hence, imports into India are down," an Indian trader informed.
"A lot of material would be offered after 22 April as Roja gets over," another Indian trader commented. "Near-term outlook for the Indian market is stable in terms of prices. However, inquiries might increase after the Eid holidays," he added.
Around 5,000 t of Europe-origin imported scrap was booked by a Chennai-based mill comprising turning scrap at $415/t, shredded at $460/t, and NTP bundling at $465/t CNF Chennai over the last three days, sources confirmed.
Bangladesh
The Bangladesh market is closed for Eid, imported scrap prices remained unchanged for the day. However, Bangladesh-based steel mills have already booked a couple of bulk cargoes for May-June shipments. Steel producers are hopeful that finished steel demand may pick up after the holidays.
A recent bulk deal is said to have concluded from New Zealand. The cargo comprised 20,000 t of mixed material of shredded and HMS 1&2 (80:20) booked at $452/t and $442/t CFR, respectively. However, the deal remained unconfirmed at the time of reporting.
TurkiyeThe Turkish imported scrap market is still stagnant, with some deals being reported at lower costs. Some small-parcel transactions continued to take place. Steel mills are away from the market which resulted in short-term stockpiling of supply and therefore plenty of cargo availability.
HMS bulk prices from the US remained at $422-25/t CFR Turkiye for the day.
Recent deals:Around 500 t of containerised shredded scrap was booked yesterday at $468/t CFR Pakistan.
A parcel of 500 t containerised shredded scrap was booked yesterday at $465/t CFR Pakistan.
Around 1,000 t of containerised US-origin shredded scrap was booked yesterday at $460/t CFR Bangladesh.
Price assessments
Europe-origin shredded scrap offers into India stood at $457/t CFR Nhava Sheva, unchanged d-o-d.
UK-origin shredded scrap prices into Bangladesh stood at $470/t CFR Chattogram, the same as previous offers d-o-d.
UK-origin shredded scrap prices in Pakistan stood at $463/t CFR Qasim, unmoved d-o-d.
