South Asia: Imported ferrous scrap market active in India and Pakistan

The market for imported ferrous scrap in South Asia witnessed increased activity today as a result of a higher number of bookings. HMS was in high demand among Indian buyers, while Pakistani scrap buyers made purchases to support their upcoming production cycle. Despite the absence of new agreements, the trading pace remained sluggish in Turkiye and Bangladesh.

Market Overview

India: The imported ferrous scrap market in India is presently displaying significant levels of activity. Shredded scrap is being presented at a price range of $430 to $435/tonne (t), although these prices are subject to fluctuations. In an effort to establish equilibrium between buyers and sellers, a number of sellers are opting to maintain higher pricing levels.

A noteworthy trend is the increasing preference for HMS over shredded in the Indian market. This preference is attributed to the easier availability and affordability of HMS scrap, particularly from sources located in western Africa and the Middle East. For HMS (80:20) of UK origin, featuring impurities at a level of 3-4%, the scrap price stands at $415-420/t for shipments to Kandla Port. Additionally, the bulk price for HMS (80:20) scrap is set at $430/t for shipments on a CFR basis to Kandla Port.

Several containers that had been reserved by nearby mills for consumption have arrived at the ports of Kandla and Mundra, SteelMint learned from market sources.

Pakistan: In Pakistan, the cost of shredded scrap originating from the UK and Europe was at $435/t CFR basis. Offers within the market encompassed a range from $440- $445/t CFR. Notably, PNS produced in Dubai is accessible at a rate of $460/t CFR, while PNS is being offered at $440/t CFR, and HMS (80:20), at $410/t CFR, Port Qasim.

Despite sluggish sales, steel mills across the nation are contemplating a price increase due to the impact of inflation. The cost of rebar stands between PKR 285,000/t to 290,000/t on ($930-$946/t), whereas locally sourced scrap can be acquired for PKR 195,000-205,000/t ($636 - $669/t). The national currency, PKR, is presently valued at 306.52, experiencing a minor decline from the previous closing rate of 304.

Bangladesh: The market for imported ferrous scrap in Bangladesh still remains subdued. Shredded scrap sourced from the UK and Europe is priced approximately at $440/t CFR. For UK-origin HMS (80:20) scrap, the cost ranges from $420-$425/t CFR. Similarly, HMS (90:10) commands an approximate price of $430/t, while PNS is being traded at prices spanning between $440-$445/t, sourced from Singapore and Hong Kong.

A purported order of 8,000 t of full PNS has been attributed to a Dhaka-based mill, reportedly placed with a Singaporean supplier at a rate of $440/t (yet to be confirmed as of the reporting period). Due to ongoing weather conditions and upcoming elections, the domestic demand for both scrap and rebar remains subdued. Locally sourced HMS (80:20) is valued at BDT 60,500/t ($554/t), while local PNS scrap holds a price tag of BDT 62,000/t ($578/t) ex-Chattogram.

Turkiye: Negotiations in the ferrous scrap sector was stalled due to a Turkish national holiday. Today, activity remains slow. Turkish steelmakers are reducing local scrap prices following a minor strengthening of the lira last week.

Recent deals

• Around 3,500-4,000 t of shredded from UK/Europe were booked at $435/t CFR Qasim
  
  
• About 500 t of Australian-origin HMS (80:20) was booked at $420/t CFR Chennai
  
  

Price assessments

India: UK-origin shredded scrap offers were at $435/t CFR Nhava Sheva, unchanged against 29 August.

Pakistan: UK-origin shredded scrap offers were at $438/t CFR Qasim, up $2/t from last closing

Bangladesh: Offers for UK-origin shredded were at $440/t CFR Chattogram, up by $3/t today.

Turkiye: US-origin HMS 1&2 (80:20) prices were stable at $374/t CFR Turkiye.

Outlook

Imported ferrous scrap offers in South Asian countries are likely to remain on the higher side owing to improved demand and active bookings, especially from India, whereas other major buyers like Bangladesh might continue to observe domestic demand and imported scrap viability from different origins owing to the limitation in LC openings.