South Asia: Imported ferrous scrap offers stagnant in sluggish market
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The South Asian ferrous scrap market experienced sluggishness at the beginning of the week as major markets, including India and Bangladesh, were bereft of deals. In addition, Pakistan's buying power was limited by an inflated currency and restrictions on opening letters of credits (LCs) for large-volume imports. The entire scenario was exacerbated by a political turmoil.
India
European shredded scrap maintained a price range of around $440/tonne for the day. The Indian domestic scrap market witnessed moderate bookings, primarily involving in cash transaction-based deals due to the prevailing circumstances surrounding India's ban on the INR 2,000-denomination notes. There were some inquiries at current offers for various grades. Participants noted the gradual clearance of material imported from the UAE at major Indian ports. These materials were transported to significant Inland Container Depots (ICDs) across western and northern India.
Additionally, the semi-finished steel market remained relatively quiet.
Moreover, there is a buzz in the market that customs has also begun to clear UAE's ferrous scrap exports from Kandla and Mundra ports. However, clearance at the port of Nhava Sheva has not yet begun.
"The Indian ferrous market remains stagnant with prices unchanged. Sentiments are soft in the domestic market. Yet, buyers are not showing interest in the current offers," a reliable trader informed SteelMint.
Pakistan
Offers for shredded scrap ranged between $440-$444/t, but the Pakistani market experienced a slow start to the week. The subdued trade flow can be attributed to the current political instability across the country, along with restrictions on opening LCs for large-volume deals and a depreciated currency.
An official at a mill in Pakistan said there was pressure from traders to sell and thus offers might reduce, indicating the possibility of near-term negative price revisions for shredded grades.
Bangladesh
Offers for European shredded and HMS scrap remained unchanged compared to the previous closing. The ferrous scrap market in Bangladesh was quiet at the beginning of the week as buyers awaited clarity. Over the weekend, a deal from Australia concluded for 1,000 t of HMS (80:20) at $435/t, CFR Chattogram.
Turkiye
Turkish imported ferrous scrap prices remained range-bound, with recyclers primarily aiming for higher levels due to collection difficulties and more attractive alternative markets.
"After the outcome of the elections, prices might go up. In fact, prices are expected to continue increasing," said a Turkish trader while referring to recent developments.
SteelMint's daily assessment for US-origin HMS 1&2 (80:20) stood at $375/t CFR Turkiye, showing no change from the last offer.
Recent deal
A recent booking of approximately 1,000 t of HMS (80:20) scrap from Australia was made at $435/t CNF Chattogram.
Price assessments
Europe-origin shredded scrap offers into India remained steady at $440/t CFR Nhava Sheva, showing no change from the last closing.
UK-origin shredded scrap prices into Bangladesh stood at $460/t CFR Chattogram, maintaining stability.
UK-origin shredded scrap prices into Pakistan stood at $443/t CFR Qasim, largely unchanged.