South Asia: Imported ferrous market sees mixed trends, demand increases in India

Today, the South Asian ferrous scrap market displayed mixed trends. In India, there was a slight increase in demand for imported scrap due to rising domestic scrap prices, yet buyers favoured cost-effective local alternatives like sponge. Purchases were largely need-based, particularly in Gujarat. Pakistan saw subdued activity in the finished steel sector, leading to reduced scrap consumption. Conversely, Bangladesh reported moderate demand for imported scrap, with favourable pricing for shredded scrap from Europe and the UK.

Shredded scrap offers rose by $4/t in India, while they decreased by the same amount in Bangladesh and remained stable in Pakistan d-o-d. Additionally, US bulk HMS (80:20) offers to Turkiye remained unchanged d-o-d.

Overview

India: In India, there's been a slight uptick in demand for imported scrap, driven by higher prices in the domestic scrap market. However, this shift is gradual, with buyers opting for imported scrap only when necessary, as alternatives like sponge are more cost-effective locally. Indicative pricing for shredded scrap from the US and Europe hovered around $420-430/t CFR, while HMS (80:20) was assessed at $395-400/t CFR.

According to a trader source, "The market sentiment is positive, but purchases are made on a need basis. When comparing imported scrap to local sponge, the latter is more appealing to buyers, especially those in Gujarat. Demand has been relatively sluggish in the past couple of months, creating a challenging environment that requires proactive sales efforts."

Additionally, the trader highlighted a supplier's observation regarding the UK market, emphasising its robustness in comparison to exports. Despite making bids for PNS at $435/t, the supplier maintained that the market should command at least $440/t. Consequently, no sales transpired due to the more favourable conditions in the domestic UK market.

A major steel mill official commented on current market conditions, "There's a noted attempt by sellers to create a false sense of urgency, potentially to inflate market prices artificially." However, the official remarked, "The situation in Bangladesh does not reflect the same level of frenzy. They questioned the validity of the exaggerated claims made by sellers, suggesting uncertainty about whether the Indian market truly aligns with such assertions."

Pakistan: Market activities in Pakistan continued to languish as the finished steel sector remained subdued, leading to decreased scrap consumption. Offers for shredded scrap from the UK and Europe were evaluated at $430-435/t CFR Qasim. However, reports indicated that buyers' bids fell below these levels.

Bangladesh: Today, the demand for imported scrap in Bangladesh was noted to be moderate, with offers for shredded scrap from Europe and the UK ranging between $420-425/t CFR, and HMS (80:20) priced at $405-410/t CFR.

A steel mill official remarked on the current market dynamics, stating, "The Indian market appears to be experiencing an artificial increase. We're receiving offers at $415-420/t from the UK and EU, whereas India is grappling with firm offers from suppliers. Among South Asian countries, Bangladeshi buyers are securing more favourable quotes compared to other counterparts."

Turkiye: Turkish imported ferrous scrap prices remained unchanged, with a shift towards less bearish sentiment. Iron ore prices stayed firm as Turkish mills prepared for imminent restocking. Offers for HMS (80:20) scraps were assessed at $382/t CFR, while indicative tradable value HMS (80:20) ranged from $380-$384/t CFR. Despite challenges, Turkish mills aimed to restock for May shipments, anticipating further deal activity. However, HMS availability at docks remained limited due to strong domestic demand from European mills.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $430/t CFR Nhava Sheva, up by $4/t d-o-d.

Pakistan: UK-origin shredded scrap indicatives were assessed stable d-o-d at $430/t CFR Qasim.

Bangladesh: UK-origin shredded scrap prices were assessed at $424/t CFR Chattogram, down by $4/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed unchanged at $382/t CFR Turkiye, d-o-d.