South Asia: Imported ferrous scrap market active; Turkiye bucks trend

• Inquiries from India up, limited supply pushes up offers
  
  
• Turkish imported scrap market shows cautious buying
  
  

The South Asian imported ferrous scrap markets were relatively active today, except for Turkiye. India saw increased scrap inquiries, with strong potential for price hikes due to limited supply. Pakistan's market showed slight improvement, while Bangladesh faced pressure from weak demand and high inventory. In Turkiye, prices fell slightly as mills awaited clearer price trends amidst weakening domestic rebar sales.

India: The imported scrap market remained moderate today as compared to yesterday, with an increase in scrap inquiries. However, due to limited supply, the potential for further price hikes remains strong.

Shredded scrap is being offered at $385-390/t from the UK, while HMS is available at $365-370/t from the same region. Australian shredded scrap is priced at $375-380/t CFR Chennai, and HMS (80:20) from Australia is being offered at $360-365/t CFR Chennai.

Recently, for 1,000 t of Australia's HMS (80:20) was sold at $355-372/t to Chennai and Mundra respectively. Shredded scrap from Australia is trading at levels above $385/t.

Pakistan: The imported scrap market is experiencing slightly improved sentiments. Offers and indicative prices from the UK and UAE suppliers are closed for the rest of the year. Inquiries are being made at $385-388/t levels, with some buyers successfully obtaining LC approvals.

Bangladesh: Imported scrap prices are showing a slight upward trend, but the market faces considerable pressure as customers are hesitant to buy more scrap due to sufficient inventory.

Manufacturers are struggling with weak demand for finished steel products, leading to a slowdown in procurement. Additionally, slow steel sales in Dhaka are worsening the industry's challenges.

Steel mills have responded to the lacklustre market conditions by lowering rebar prices. Last heard, rebar prices were at BDT 75,000-77,000/t in Dhaka and BDT 81,000-82,000/t in Chattogram, reflecting a w-o-w decline in market demand.

As per a Dhaka-based importer, the market is cautious, with offers of Australian bulk HMS (80:20) at $375-380/t, but there is little interest from buyers. Similarly, shredded bulk scrap from Australia is priced at $385-390/t, while Singapore-origin containerised shredded scrap is offered at $385-395/t. Offers for PNS scrap from Singapore and Malaysia are at $390-395/t, but demand remains weak.

Turkiye: Turkish imported scrap prices fell slightly d-o-d as buyers and sellers waited for clarity on near-term price trends. A Turkiye-based trader stated, "Mills are not rushing to procure as the material is available. Domestic rebar sales are weakening, which is slowing down procurement."

Buyers and sellers' price expectations continued to differ, with US sellers targeting offers for HMS (80:20) scrap at $360/t CFR, while Baltic recyclers quoted HMS (80:20) at $350-355/t CFR. A buyer's bid for premium HMS (80:20) was reported between $345-$350/t CFR.

Turkish buyers remained in a wait-and-see mode while sellers were holding on to offers for January-loading cargo. Interest from Turkish mills in shortsea cargoes declined as recyclers' offers remained high.

Recently, a deal was confirmed from a mill in the West Marmara region that secured EU-origin bulk scrap HMS (80:20) at $346, and bonus on CFR basis at $366/t.

Price assessments

India: UK-origin shredded indicatives were up by $1/t d-o-d at $388/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives edged up by $3/t d-o-d to $392/t CFR Qasim.

Bangladesh: UK-origin shredded was assessed at $393/t CFR Chattogram, up by $1/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk was assessed at $353/t CFR Turkiye, down by $1/t d-o-d.