South Asia: Imported ferrous scrap index continues to remain under pressure - 6 Aug'24

The South Asian ferrous scrap index remained under pressure. In India, buyers remained inactive due to a significant gap between offers and bids and a subdued steel market. Pakistan's buyers showed limited interest in imported scrap, anticipating lower offers due to softening global sentiments. Bangladesh's steel industry faced disruptions from recent geopolitical turmoil, impacting trade flows. Meanwhile, Turkish deep-sea imported ferrous scrap prices saw a slight increase, influenced by a stronger euro and limited activity, with Turkish mills largely inactive but beginning to inquire about material for upcoming cargoes.

Overview

India: Indian buyers remained inactive and showed no interest in booking imported scrap due to a significant gap between offers and bids, coupled with a subdued steel market. Indicative offers for shredded scrap from the UK/Europe were at $410-420/t CFR Nhava Sheva, and HMS (80:20) was at $385-390/t CFR.

A representative from a trading company said, "So far, there have been no inquiries from buyers. Instead, traders are pushing hard for business. Even if there is any requirement, the buyers are quoting unworkable prices."

Pakistan: Pakistani buyers displayed limited interest in imported scrap due to weak finished steel demand and expectations of a drop in offers amid softening global market sentiments. Indicative offers for shredded scrap from the UK/Europe were assessed at $425-430/t CFR Qasim.

In the domestic market, scrap prices were reported at PKR 155,000/t, billets at PKR 220,000/t, and rebar at PKR 250,000-258,000/t.

Bangladesh: The recent geopolitical turmoil in Bangladesh has indirectly hampered the steel industry followed by weakened metal and recycling trade flows. The ongoing civil unrest has severely impacted connectivity and trade, particularly affecting the steel industry concentrated in Dhaka. The turmoil has led to operational challenges and trade disruptions, raising concerns among industry stakeholders.

Last heard indicative offers for shredded scrap from the UK/Europe were heard at $425-430/t CFR Chattogram, while HMS (80:20) were at $405-410/t CFR.

Turkiye: Turkish deep-sea imported ferrous scrap prices inched up due to a stronger euro and limited deep-sea deal activity, making European and US tradable levels less clear. Offers for HMS (80:20) at $387/t CFR. Indicative tradable values for US/Baltic-origin or premium HMS (80:20) ranged between $385-388/t CFR, while EU-origin HMS (80:20) ranged from $380-383/t CFR.

Turkish mills remained largely inactive in the deep-sea market, waiting to see where billet prices settle. However, some agents have reported that mills are inquiring for material for first-half September cargoes. The recent strength of the euro against the dollar complicated the market, as European recyclers considered whether $380-383/t CFR was still feasible. No offers were available from US recyclers due to the ongoing domestic scrap purchase week.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $417/t CFR Nhava Sheva, stable d-o-d.

Pakistan: UK-origin shredded indicatives were assessed at $427/t CFR Qasim, down by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $387/t CFR Turkiye, up by $1/t d-o-d.