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South Asia: Imported ferrous scrap market continues to face challenges

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Melting Scrap
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14 Jan 2025, 19:35 IST
South Asia: Imported ferrous scrap market continues to face challenges

  • South Asia continues to see sluggish demand



  • Turkiye stays firm but bearish sentiment emerges



The South Asian scrap market continued to face challenges today, with subdued activity across India, Pakistan, Bangladesh, and Turkiye.

In India, weak steel market conditions and currency depreciation against the USD impacted demand for imported scrap. Pakistan experienced sluggish mill operations and declining local scrap prices, while Bangladesh saw cautious buying due to softening steel markets and delays in government projects.

Notably, prices of UK-origin shredded dropped by $5/tonne (t) d-o-d in India, while tags held steady d-o-d in Pakistan and Bangladesh. Yesterday too, markets witnessed subdued demand, with imported ferrous scrap offers dropping by up to $5/t across regions.

Meanwhile, Turkiye's market remained steady, although sentiment remained bearish, with hopes of a recovery in the near term. US-origin HMS (80:20) bulk prices remained unchanged d-o-d.

Overview

India: Indian buyers showed minimal interest in imported scrap, driven by subdued demand amid a slowdown in the domestic steel market. The depreciation of the Indian rupee against the USD further escalated import costs, curbing buying activity.

Indicative offers for shredded from the UK/Europe were assessed at $375-380/t CFR Nhava Sheva, while bids remained at around $370/t CFR. HMS (80:20) offers from Europe ranged within $355-360/t CFR, with buyers comfortable at $350/t CFR. Meanwhile, West African HMS (80:20) was offered at $350-360/t CFR, depending on container loading size.

A trader remarked, "The dollar has had a drastic impact on the market, with an estimated $12/t impact currently visible."

Pakistan: Pakistan's imported scrap market witnessed a sluggish trend, as local scrap prices dropped to PKR 142,000/t, while rebar prices remained stable at PKR 240,000-245,000/t. Mills operated at reduced capacities due to weak demand.

Indicative offers for UK/Europe-origin shredded hovered at $383-385/t CFR Qasim, with suppliers increasingly reducing offers amid market pressure. Buyers aimed to secure deals at $380-383/t CFR, reflecting a cautious sentiment in a softening market.

Bangladesh: Bangladesh's imported scrap market sentiment remained subdued due to weak local demand and slowing government projects, despite steady prices of domestic material. Rebar prices softened further, pressuring buyer activity. While some deals were heard, the market lacked clear momentum, reflecting cautious buying and sufficient inventories.

Australian-origin HMS 80:20 was offered at $360/t CFR Chattogram, with shredded at $380-385/t CFR. PNS from Hong Kong was heard at $385/t CFR, while Japanese rebar bundles were priced at $393/t CFR.

Turkiye: The Turkish imported scrap market remained steady, with US-origin HMS (80:20) prices assessed at $341/t CFR, unchanged d-o-d. US and Baltic-origin deals were heard at $340-342/t CFR, reflecting stable but cautious trading. Mills expected further softening due to weak demand for finished steel and good scrap availability. Exported rebar was assessed at $555/t FOB, down $7-8/t w-o-w.

While sell-side participants hoped for recovery, buyers pushed for lower prices, leveraging euro depreciation against the dollar to secure competitive offers from European recyclers. Market sentiment remained bearish amid subdued end-product sales.

The Turkish scrap market saw US- and EU-origin deals ranging within $338-342/t CFR on 13 January 2025, reflecting a slight drop of $1-2/t compared to previous trades. In the West Marmara region, a US-origin cargo included 21,000 t of HMS (85:15) at $338/t and 10,000 t of shredded at $355/t. Another deal featured HMS (90:10), shredded, and bonus grades at $342/t and $359/t, respectively. In the East Marmara region, transactions included US-origin HMS (80:20) at $342/t and Baltic-origin HMS (80:20) at $340/t.

Price assessments

India: UK-origin shredded indicatives were assessed lower by $5/t d-o-d at $375/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives were assessed stable d-o-d at $384/t CFR Qasim.

Bangladesh: UK-origin shredded stood stable at $386/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk was assessed unchanged d-o-d at $341/t CFR Turkiye.

14 Jan 2025, 19:35 IST

 

 

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