South Asia: Ferrous scrap trade continues to remain sluggish

The South Asian ferrous scrap market remained sluggish with limited activity seen in all the three countries- India, Pakistan, and Bangladesh. Although Pakistani buyers booked small parcels as prices moved up, overall activities remained slow due to the political turmoil and LC problems. The Turkiye market remained silent with no trade seen.

SteelMint, the market analysis platform, provided key insights into the market developments-

India

European shredded scrap offers were at $440/t with no major inquiries seen.

Market participants expected scrap prices to remain at these levels for the next few days, as there was a slight improvement in the demand-supply chain.

An Indian trader informed SteelMint about an offer of $450/t shredded scrap for June-end shipment to Mundra. Market participants predicted a slowdown in the steel industry, leading to decreased sales. However, they anticipated a slight increase in scrap prices for the next month's bookings.

Pakistan

Offers for shredded scrap ranged between $440-445/t, but no major deals were concluded except for small parcel bookings at workable prices.

The market faced challenges due to dumped smuggled Iranian finished steel, causing problems for local producers. Despite this, there was a slight increase in deals, with banks allowing fast-track LC openings. A major mill representative reported a sale of 25,000 t of scrap in the previous week.

"Yes, deals are improving. Banks now allowing fast-track LC openings though not fully open. 25,000 t of scrap was sold last week," he said.

Bangladesh

Offers for European shredded scrap and HMS of EU-origin remained unchanged. Bangladeshi buyers were cautious due to the upcoming budget and monsoon season. They showed interest in scrap grades from suppliers outside of the US and Europe, indicating a potential change in buying patterns.

Turkiye

Turkish imported ferrous scrap prices remained steady with less activity seen ahead of a public holiday on 19 May.

Steel mills resisted higher offers, expressing willingness to pay a maximum of $375/t CFR.

SteelMint's daily assessment for US-origin HMS 1&2 (80:20) stood at $375/t CFR Turkiye, unmoved d-o-d.

Recent deal

Around 500 t of shredded scrap from Europe was booked at $438/t CNF Qasim.

Price assessments

• Europe-origin shredded scrap offers into India stood at $440/t CFR Nhava Sheva, unchanged d-o-d.
  
  
• UK-origin shredded scrap prices into Bangladesh stood at $460/t CFR Chattogram, stable d-o-d.
  
  
• In Pakistan, UK-origin shredded scrap prices stood at $443/t CFR Qasim, largely stable.
  
  

The South Asian ferrous scrap market experienced slow trading and prices for different scrap grades remained relatively steady. There are expectations of potential changes in the upcoming week's bookings or buying patterns.