South Asia: Imported ferrous scrap market in wait-and-watch mode; moderate trade in India

The South Asian imported ferrous scrap market got off to a slow start on the opening day of the week, with major players opting for a wait-and-see approach before making additional bookings. The Bangladeshi market experienced a decline in container offers yet bulk deals were heard to be concluded till last weekend as per market participants. Meanwhile, in Pakistan, depending on current oil and gas price hikes, mills are expected to slow down purchases to maintain production margin. The Turkish-imported scrap market showed concern, but Europe heard a somewhat lower-priced offer.

Market Overview

India: The imported ferrous scrap market in India was slow today. Buyers adopted a wait-and-see stance amidst volatility in prices. The market was in fluctuating mode. Offers for containerised shredded scrap from Europe were heard at $425-430/t CFR Nhava Sheva, while HMS (80:20) scraps were coming at $412-415/t CFR. Shredded scrap offers from the US were heard at $422-425/t CFR Nhava Sheva.

This week, India western region saw some dullness because of festivals, but other metallic prices were within normal ranges.

Pakistan: Today, the demand for imported scrap in Pakistan remained lacklustre. Given that it was the beginning of the week and with expectations of a decrease in offers, steel mills opted to postpone their procurement decisions. Offers for shredded scrap were assessed at $430-435/t CFR Qasim.

In the domestic market, there was limited demand for finished steel, followed by hiked oil and gas prices as per a recent circular, leading to reduced scrap consumption within the sector.

Bangladesh: In Bangladesh, the demand for containerized imported scrap was subdued. However, bulk offers from the US West Coast were being floated in the market. However, Bangladeshi mills showed reduced appetite for imports due to the ongoing economic challenges and issues related to letters of credit (LC). Offers for shredded were at $440-442/t CFR Chattogram, while HMS (80:20) was at $420-422/t.

Turkiye: Negotiations in the ferrous scrap sector continued to be sluggish as the situation in the finished steel market remained unfavourable. Insiders do not see the possibility of downward price corrections amid the tight availability of the material and believe the market may stabilise in the short term. Considering the levels in the recent transactions, the HMS (80:20) deal from Europe concluded at $366/t on CFR Turkiye basis, indicating slight fluctuation in the current price trend from the European region into Turkiye.

Recent deals

• Around 500 t of shredded scraps from Australia were booked at $407/t CFR LCB
  
  
• About 500 t HMS (80:20) scrap of Australia was sourced at $377/t CFR LCB
  
  
• Approximately 5,000 t of HMS (80:20) scraps from Brazil were procured at $437/t CFR Nhava
  
  
• 3,000 t of Brazilian HMS (80:20) scrap was booked at $428/t CFR west-coast
  
  
• 2,000 t of shredded scraps from the US were booked at $429-430/t CFR Mundra
  
  
• 500 t Latin American HMS sold at $430/t CFR West Coast
  
  
• 250 t PNS from Latin America booked at $445/t CFR West Coast
  
  

Price assessments

India: UK-origin shredded scrap offers were at $429/t CFR Nhava Sheva, slightly up by $1/t since the last closing.

Pakistan: UK-origin shredded scrap offers were up by $1/t to $433/t CFR Qasim today.

Bangladesh: Offers for UK-origin shredded scrap were down by $2/t to $440/t CFR Chattogram, from Friday.

Turkiye: US-origin HMS 1&2 (80:20) prices were stable at $377/t CFR Turkiye.

Outlook: Imported ferrous scrap prices to remain flat this week as per market participants further price change can be expected after the festive week is over in India. Whereas, no Major changes are anticipated towards the weekend in the Bangladesh and Pakistan markets amid LC-related problems.