South Asia: Ferrous scrap prices drop amid weaker demand

The South Asian imported scrap market continued its slow trend as major markets Bangladesh and Pakistan were not actively procuring amid the post-Eid sluggish trade.

Indian ferrous scrap prices also showed a downtrend as major steelmakers were waiting for a correction. Their anticipation stemmed from the sluggish movement in the finished steel market.

India

Shredded scrap offers were heard at $445-450/tonne (t) CFR Nhava Sheva. Prices are currently not supportive for the sellers, because buyers are putting pressure to reduce prices further amid weak demand. Billet, rebar, and wire rod prices in the domestic market have seen a downward movement for the day due to slow response from end-users. Small container bookings from Europe are going at prices lower than the current offers, a reliable source recently confirmed.

"I heard Europe-origin shredded is being offered at $445/t CFR Mumbai," an Indian trader said.

A steel producer in Mumbai has booked 25 tonne (t) of PNS from Dubai at a price of $440/t CNF, Nhava Sheva, another trader informed SteelMint.

"Not much business has happened. Around 500 t of shredded was sold from the US at $450/t and 500t of Yemen-origin HMS was sold for $436/t, for West Coast India," another trader shared. "The market is currently slow," the trader added.

Bangladesh

"We are on pause for the moment but plan to come back late this week. Enquiries are going out at lower prices from our side," a Bangladeshi buyer said today.

Indicative prices for shredded in containers from the UK received for the day were at around $465/t, and for HMS(80:20) of Europe-origin, the indicative offers were heard at $445/t CFR Chattogram.

Pakistan

Pakistan remained closed for the weekend due to Eid-al-Fitr holidays. Some market players are likely to remain away for the week. But the scrap buyers are looking for market clarity. The domestic finished steel market remained sluggish and may remain closed next week too due to the Eid holidays.

Turkiye

Turkiye, a major price setter for the global imported scrap market, remained slow for the day as recent US and Europe deals concluded at $415/t for HMS (80:20) and shredded with bonus scrap at $435/t respectively, CFR Turkiye. It was also heard that several deals had been booked over the week.

"Everyone is hoping that prices will fall further and $400/t CFR will come within reach soon," a Turkish trader predicted.

Bulk prices from the US remained at $416/t CFR Turkiye for the day.

Price assessments

Europe-origin shredded scrap offers into India stood at $450/t CFR Nhava Sheva, down by $5/t d-o-d.

UK-origin shredded scrap prices into Bangladesh stood at $465/t CFR Chattogram, down by $5/t d-o-d.

UK-origin shredded scrap prices in Pakistan stood at $460/t CFR Qasim, unchanged d-o-d.