South Asia: Ferrous scrap market's slow trend continues, Bangladesh silent

The South Asian ferrous scrap market continued its slow trend, with nominal bookings and lower prices seen in India and Pakistan. Offers remained stagnant in these countries, and cautiousness among market players persisted as adopted a wait-and-watch approach prevailed.

In Bangladesh, trade activities were absent due to lack of interest from buyers, especially due to the slow domestic market.

India

In India, prices for shredded-grade ferrous scrap were around $438-440/tonnes (t). However, a shredded deal from the UK/Europe was reportedly booked at the $430/t level for CIF west coast India.

The domestic ferrous scrap markets like Mandi, Ahmedabad, and Durgapur experienced negative price corrections of INR 200/t, on the heels of moderate semi-finished steel demand.

Recent discussions with market players have revealed that in the current scenario, sponge prices hold greater relevance for mills than scrap prices. As a result, the sponge-to-scrap ratio at mills located in the western and northern regions has been revised to 50:50. This adjustment reflects the growing importance of sponge as raw materials for these mills' operations.

Pakistan

Imported ferrous scrap prices in Pakistan saw a slight decline, with small volume bookings reported at the $440/t range throughout the week for shredded scrap of European origin.

A major mill representative from Pakistan informed SteelMint that there is no chance of an increase in prices. Rather, prices can drop to $430/t in the next 10 days.

Bangladesh

In Bangladesh, ferrous scrap offers for HMS and shredded scrap of UK origin remained unchanged. Cash flow problems and slow demand were significant factors leading to low scrap demand in the country. Participants were not hopeful of a better round of deals next week due to the upcoming monsoon.

Turkiye

Turkish imported ferrous scrap prices remained range-bound, with only some deals heard at the $380-382/t range yesterday. This was followed by one UK-origin deal heard at $378/t, booked by a mill based in the Aegean region.

Prices were moderately strong towards the weekend with nominal deals closed, and the direction would be clear only after the much-awaited presidential election result on 28 May 2023 (Sunday).

SteelMint's daily assessment for US-origin HMS 1&2 (80:20) stood at $380/t CFR Turkiye, edging up by $2/t from the last offer.

Recent deals:

Around 1,000 t of busheling scrap from Europe was booked at $455/t on CIF Mundra.

Approximately 500 t of HMS(80:20) scrap of South American origin was sold at $435/t CIF Mundra.

A parcel of 2,000 t of shredded scrap of Europe-origin was booked at $430/t for CFR Nhava Sheva.

Around 3,000 t of shredded scrap has been booked recently at $440/t CFR Qasim.

Price assessment

• Europe-origin shredded scrap offers into India stood at $439/t CFR Nhava Sheva, inching down by $1/t from last offers.
  
  

• UK-origin shredded scrap prices into Bangladesh stood at $460/t CFR Chattogram, unchanged d-o-d.
  
  

• UK-origin shredded scrap prices into Pakistan stood at $441/t CFR Qasim, down by $2/t d-o-d.