South Asia: Imported ferrous scrap market continues to remain slow amid mixed sentiments

On Wednesday, the South Asian ferrous scrap index witnessed a mixed trend. In India, indicative prices of imported ferrous scrap from Europe remained largely stable with continued dull interest among participants. In Pakistan, prices continued to move upward, though trade activities remained dull. Bangladesh, on the other hand, received containerised scrap offers at higher levels despite weaker interest for these prices, as buyer inquiries for bulk scrap increased due to fluctuating global price trends. In Turkiye, reports of U.S. bulk booking were heard in the market, which has pushed the price levels slightly upward.

Overview

India: The ferrous scrap market continued to remain slow with shredded prices at Nhava Sheva hovering around $388-392/tonne (t) CFR. As per market participants, "Indian buyers, who are expecting prices to bottom out, have reached for containerised scrap but are not showing interest due to weak steel demand in the market."

Indian market sentiment for containerised scrap booking is likely to remain dull in the coming days, as per a major mill side representative.

As per industry reports, a nationwide strike by 18,000 employees at 12 major ports, starting on 28 August, could severely disrupt trade, especially during the critical Christmas and New Year shipping season. The strike, protesting a 32-month delay in wage negotiations, will halt essential services such as containers, coal, and iron ore, resulting in an estimated daily loss of INR 125 crore. While this disruption may temporarily affect port activities, it is expected that the issue will be resolved soon.

Pakistan: Imported ferrous scrap offers into Pakistan rose slightly by $1/t d-o-d. However, the workable levels continued to be around $390-394/t CFR for Europe-origin shredded scrap.

According to market insiders, local scrap was priced at PKR 143,000-146,000/t, with limited availability but low demand. UK and UAE-origin ferrous scrap inquiries remain dull following a rise in offers up to $405-415/t CFR.

Bangladesh: Bangladesh's imported ferrous scrap market continued to witness a silent day with indicative offers for shredded scrap from the UK/Europe reported at $398-400/t CFR Chattogram, while HMS (80:20) offers were at $388-390/t CFR.

Offers for scrap materials include 2,000 t of HMS (80:20) from Brazil at $400/t, 3,000 t of PNS from Singapore/Malaysia at $435/t, and 2,000 t of busheling from Malaysia/Singapore at $440/t. Additionally, 2,000 t of PNS from Peru was being offered at $425/t with a loading of 26/27 t, while Brazilian PNS is available at $420/t for 1,000 t. European PNS is priced at $433/t, and HMS from the US is offered at $420/t.

Turkiye: Turkish imported ferrous scrap prices have risen, driven by improved market sentiment and a firmer stance from sellers. The strength of the Euro and recovery in China's market further supported the price increase. Short sea scrap prices also remained firm, as Romanian and Bulgarian sellers favoured their local markets, narrowing the gap between short sea and deep sea prices.

Despite Turkish mills' efforts to push prices down, the market maintained its upward trend. Short sea scrap was assessed at $358/t CFR, reflecting strong domestic demand in Romania and Bulgaria. BigMint's daily assessment of US-origin HMS (80:20) increased slightly to $363/t CFR, up by $2/t from the previous day.

Price assessments

India: UK-origin shredded scrap indicatives remain stable at $391/t CFR Nhava Sheva from the previous day.

Pakistan: UK-origin shredded indicatives edged up by $1/t at $400/t CFR Qasim from the previous day.

Bangladesh: UK-origin shredded prices edged down by $5/t at $400/t CFR Chattogram from the previous day.

Turkiye: US-origin HMS (80:20) bulk prices edged up by $2/t at $363/t CFR Turkiye from the previous day.