South Asia: Imported ferrous scrap market dull; India, Pakistan see limited deals

The imported ferrous scrap market in South Asia, including India, Pakistan, and Bangladesh, has been moving slowly as major buyers await the right time to assess price directions and return for procurement. Few deals in India and Pakistan were heard to be concluded as per recent market enquires.

India

In India, there have been no major changes in offers, as trade activity remained low. Market players are in a waiting mode, expecting more clarity before active procurement. Once they start purchasing actively, suppliers are likely to increase their offers.

Currently, finished steel sales in India are sluggish, leading to reduced demand in the market prior to the monsoon onset. According to recent inquiries, a major Indian steel producer reportedly booked 5,000 t of shredded scrap from Europe at $448/t on a 120-day LC basis. Offers for European shredded material were in the range of $430-435/t CFR Nhava Sheva, while HMS (80:20) was priced at $416-420/t, with no significant buying reported.

Pakistan

In Pakistan, the ferrous scrap market remains gloomy both for domestic and imported materials. A few deals from the UK and UAE were reported recently, including 1,500 t of UK-origin shredded material booked at $440 t CFR Qasim, followed by 600 t of PNS and HMS (80:20) scrap booked at $452/t and $415/t CFR basis, respectively. However, LC issues are becoming more serious for major players also and market participants are concerned about further bookings for July shipments.

Bangladesh

In Bangladesh, imported ferrous scrap prices have remained mostly unchanged due to weaker domestic demand. Fresh offers were not heard for the day, but indicative prices for UK shredded scrap were at around $455-460 per ton CFR Chattogram, while UK-origin HMS was priced at $425-430 per tonne, both unchanged d-o-d.

Turkiye

In Turkiye, offers for US-origin HMS (80:20) in bulk were lower compared to previous days. Major mills in Turkiye have reduced their buying targets due to slow rebar sales, resulting in a slight decline in Turkish deep-sea imported ferrous scrap prices. Market participants expect limited activity until the Turkish interest rate announcement on 22 June.

SteelMint's assessment for US-origin HMS 1&2 (80:20) is at $387/t CFR levels, the same as yesterday.

Price assessments

• European shredded scrap offers into India stood at $435/t CFR Nhava Sheva, slightly down by $1/t d-o-d.
  
  
• UK-origin shredded scrap prices into Bangladesh were assessed at $460/t CFR Chattogram, unchanged d-o-d.
  
  
• UK-origin shredded scrap prices into Pakistan were assessed at $435/t CFR Qasim, decreasing by $3/t d-o-d