South Asia: Ferrous scrap prices rise in fresh deals from Pakistan
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In a significant development, the South Asian ferrous scrap market looked upbeat today. Interestingly enough, Pakistan buyers turned active and many deals were concluded at $435-440/t levels.
On the other hand, Indian buyers bid low for the imported material. Hence, no deal was concluded as offers increased. The Bangladesh market was quiet amid higher prices. However, trade may pick up soon ahead of monsoon. Sources informed SteelMint that the market picked up on the back of recent Turkish deals boosting prices.
India
India failed to strike any deals as buyers were not interested in the higher offers. "Buyers were asking at $430/t levels but no deals were concluded," said an Indian trader while speaking exclusively to SteelMint. Market players believe that prices have increased suddenly due to Customs clearance issues related to Dubai-imported material and active Turkish deals.
Bangladesh
Meanwhile, buyers in Bangladesh were still reluctant to engage in market activities for deep sea imports of steel scrap over the past week, sources aware of the development said. The main reasons for Bangladesh remaining slow were said to be problems with a weaker currency and difficulty in obtaining letters of credit (LC).The only bulk-buying activity heard in the week till Thursday was a 15,000-tonne Japanese cargo booked from the Kanto tender at an estimated price of $405-410/t CFR Bangladesh for H2-grade material.
Pakistan
Pakistan buyers were active in the market. As a result, many deals were concluded at $435-440/t CFR basis. Experts think that this will boost market sentiment as the country was struggling with political turmoil. For shredded, prices hovered at $439-440/t for UK and Europe-origin material. "Around 10,000 t of imported material have been booked recently as prices are up," said a reliable source.
Price assessments
- Europe-origin shredded scrap offers into India stood at $437/t CFR Nhava Sheva, up $4/t d-o-d.
- UK-origin shredded scrap prices into Bangladesh stood at $460/t CFR Chattogram, up by $10/t d-o-d.
- UK-origin shredded scrap prices in Pakistan stood at $439/t CFR Qasim, up $11/t from yesterday.
