South Asia: Imported ferrous scrap market inches down amid weak demand
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- Turkish mills securing cargoes on discounts
- Pakistan stable despite one-week lockdown
The scrap markets in India, Pakistan, Bangladesh, and Turkiye inched down marginally d-o-d amid weak steel demand and cautious buyer sentiments. Indian and Pakistani markets were stable, with slight price adjustments seen, while Bangladesh's import activity remained slow. In Turkiye, scrap prices were down as mills secured discounted cargoes. US scrap prices softened due to falling Turkish rebar prices and a stronger dollar.
Overview
India: Weak domestic steel market conditions dampened scrap demand, keeping Indian buyers on the sidelines. Offers for shredded scrap from the US and UK/Europe were reported at $390-395/t CFR Nhava Sheva/Mundra, with HMS at $360-365/t CFR Nhava Sheva/Mundra.
A trader noted, "Despite buyers holding back their procurement, sellers are not lowering prices. If buyers wait another 10-15 days, prices might face pressure. Otherwise, these will likely stay stable or even firm up."
Another trader stated, "There is an expectation that prices will not decrease any further. If these do, then these will likely hit the bottom, at which point suppliers will hold back their material. Furthermore, no significant deals have been reported, as buyers remain cautious about potential price drops, and the overall global sentiment is also impacting the market."
Pakistan: The imported ferrous scrap market saw a marginal decline in prices.
Imported offers for EU/UK-origin shredded scrap were quoted at $392-393/t, but for December shipments from the UK, buyers were seen quoting at $388-390/t levels.
In the domestic market, Lahore faced a one-week lockdown due to severe smog and pollution, disrupting industrial activities and affecting the supply chain.
A trader said, "Inventory is adequate to cover demand until January. So no purchases are expected this month. However, buying for February will be necessary, with a target price of approximately $380/t."
Domestic shredded scrap prices have seen a marginal correction and hover at PKR 143,000-145,000/t while rebar rates in Punjab were at PKR 245,000/t. In Karachi, rebar was priced at PKR 248,000/t for cash transactions and PKR 255,000/t on credit. Sellers were promoting cash sales due to ongoing liquidity challenges.
Bangladesh: Bangladesh's imported scrap market was slow today, driven by weak steel demand, with import activity remaining sluggish. African HMS (80:20) was offered at $360-365/t, while European HMS (80:20) was priced at $375-380/t. Similarly, HMS (80:20) from Malaysia, Indonesia, and Singapore was also priced at $370-375/t, and shredded scrap, at $400/t, CFR Chattogram.
The price of billet stood at BDT 67,500/t, while rebar was at BDT 78,000-80,000/t, with the highest reaching BDT 83,000/t. Meanwhile, domestic scrap prices ranged from BDT 50,000 to BDT 53,000/t, ex-yard.
Turkiye: The Turkish imported scrap market remains largely stable, with Turkish mills staying quiet today. US recyclers are showing resistance, with offers ranging from $356 to $360/t CFR. Baltic and European HMS (80:20) bulk prices are reported at $350-355/t CFR.
A market participant predicted a continued downtrend in mid-November, while another saw a less bearish trend with a tradable range of $356-358/t CFR Turkiye for premium HMS (80:20).
US scrap export prices, which had boosted domestic scrap prices for mini-mills in early October, have reversed due to falling Turkish rebar prices and a stronger US dollar against the Turkish lira.
Price assessments
India: UK-origin shredded scrap indicatives edged down by $3/t to $388/t CFR Nhava Sheva compared to the last closing on Friday.
Pakistan: UK-origin shredded indicatives edged down by $2/t to $390/t CFR Qasim compared to the last closing day.
Bangladesh: UK-origin shredded prices were at $392/t CFR Chattogram, down $4/t compared to the last closing on Friday.
Turkiye: US-origin HMS (80:20) bulk prices edged up by $1/t to $357/t CFR Turkiye compared to the last closing day.
