South Asia: Imported ferrous market witnesses mixed trend d-o-d
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The South Asian ferrous scrap market showed mixed results today. In India, buyers are delaying imported scrap purchases, hoping for lower prices amidst a global market downturn. Pakistan's market is experiencing a slowdown in bookings, affected by moderate rebar demand and adverse weather conditions. Meanwhile, Bangladesh's market remained steady but subdued due to reduced infrastructure activities. In Turkey, the market has stabilised with consistent deep-sea scrap prices, although concerns about potential future declines persist.
Overview
India: Indian buyers continued to shy away from imported scrap, thanks to the availability of more cost-effective alternatives within the domestic market. With global markets like Turkiye experiencing a downturn, buyers are also anticipating further price corrections. As previously reported by BigMint, Turkish imported scrap offers have plunged to nearly a 10-month low, prompting Indian buyers to hold off on significant purchases, expecting prices to hit rock bottom soon. Indicative offers for shredded scrap from the US and UK/Europe were at $393-398/t CFR Nhava Sheva, while buyers are seeking prices below $390/t. Meanwhile, HMS (80:20) offers from the UK/Europe were at $370-375/t CFR.
Pakistan: Pakistani buyers have slowed down their bookings as they wait for a more stable price trend to emerge. Demand for rebar in the domestic market remained moderate due to the off-season, exacerbated by adverse weather conditions and delays in payments. Indicative offers for shredded scrap from the UK/Europe have been reported at $395-398/t CFR Qasim.
Bangladesh: Bangladesh's imported ferrous scrap market remained moderate today, as the slowdown in infrastructure and construction activities has dampened rebar consumption and reduced scrap demand. Indicative offers for shredded scrap from the UK/Europe were reported at $410-415/t CFR Nhava Sheva, while HMS (80:20) offers were at $390-395/t CFR.
Turkiye: The Turkish imported ferrous scrap market remained stable, with deep-sea prices holding at $360/t CFR. Mills continued to restock at this level, consolidating the market's bottom. Offers for US-origin bulk HMS (80:20) were consistently valued at $360/t CFR, while EU/UK-origin HMS was slightly lower at $355/t CFR. A potential US-origin deal at $360/t CFR further supported the price stability. However, some bearish sentiment persisted due to weakening iron ore prices and declining Russian billet prices, reflecting concerns that scrap prices might dip below $350/t CFR soon.
Price assessments
India: UK-origin shredded scrap indicatives edged down by $1/t to $397/t CFR Nhava Sheva d-o-d.
Pakistan: UK-origin shredded indicatives remained stable at $396/t d-o-d, CFR Qasim.
Bangladesh: UK-origin shredded prices were assessed unchanged at $413/t CFR Chattogram d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were kept unchanged at $360/t CFR Turkiye d-o-d.