South Asia: Import ferrous scrap market witnesses mixed sentiments

The South Asian ferrous scrap market saw mixed sentiments today. In a significant development, Bangladesh booked 15,000 t of Japanese H2 grade material at JPY 46,226/t ($342/t) FAS. Indian buyers also struck a deal. However, Pakistan continued to grapple with political turmoil. Prices remained range-bound with Bangladesh and Pakistan witnessing downward corrections.

India

India saw a deal for Thailand-origin 500 tonnes (t) of turning scrap at $392/t CNF Chennai. "The local market is on an upward trend. However, this is temporary as a lot foreign suppliers will start offering at lower rates. Banning imports from the UAE may not impact market sentiments in a major way," said a trader source.

"I import from Europe. So, it's better for me. Emirates-origin scrap is mixed with African-origin material. Hence, it is difficult to repose one's trust in and less consistent in quality," said a buyer source.

Pakistan

In contrast, Pakistan's ferrous scrap market continued to remain slow as regards opening of letters of credit (LC) for large cargo bookings. However, last week the country saw some small-parcel deals at $435/t CFR Qasim.

Domestic steelmakers increased finished product prices. But with low demand from end-users amid a depreciated currency and political disturbance, market sentiments were affected.

"The Lahore market was closed due to protests and roadblocks. The political and economic situation is impacting market sentiments," shared a trader source.

Bangladesh

Bangladesh's import scrap market remained mostly silent this week. However, a major mill in the country is looking for the opportunity to book bulk cargoes at tradable price levels.

A mill has booked bulk cargo of around 15,000 t of Japanese H2 material in today's Kanto Tetsugen scrap export tender. This is the third consecutive month that a Bangladesh-based steel mill has won the Kanto tender bid.

Market participants are hopeful that the upcoming budget for FY23 would be more supportive for the steel industry. The budget size would be around BDT 7.5 lakh crore, which will be the highest ever in the history of Bangladesh, according to a document published by the Finance Division.

Turkiye

Turkish ferrous scrap deals concluded recently showed abrupt price fluctuations depending upon the origin of the material. Interestingly, Europe-origin deals were mostly concluded at higher prices than US deals. Participants expect some positive price correction. However, only after the election in Turkiye, the market may get a clearer direction.

SteelMint's assessment for US-origin bulk HMS remained at $373/t, a slight positive correction of $3/t d-o-d.

Price assessments

Europe-origin shredded scrap offers into India stood at $431/t CFR Nhava Sheva, up by $2/t d-o-d.

UK-origin shredded scrap prices into Bangladesh stood at $450/t CFR Chattogram, down $5/t d-o-d.

UK-origin shredded scrap prices in Pakistan stood at $430/t CFR Qasim, down $2/t from yesterday.