South Asia: Imported ferrous scrap market largely stable, except India
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The South Asian ferrous scrap market remained largely stable except in India. In India, a surge in demand for imported scrap has emerged, driven by a shortfall in the local market. Meanwhile, Pakistani buyers have remained on the sidelines amidst a sluggish domestic steel industry, with some mills contemplating production halts. Bangladesh faces similar challenges, with market activities stagnating post-elections and delays in LC approvals further exacerbating the situation.
Shredded scrap offers dropped by $4/t in India, $2/t in Pakistan while remaining unchanged in Bangladesh. US bulk HMS (80:20) offers too remained flat d-o-d.
Overview
India: In India, there has been a rise in demand for imported scrap, driven by a shortage in the domestic market. Shredded scrap from the US and Europe has been priced between $420-430/t CFR, while HMS (80:20) from West Africa and Europe is valued at $400-410/t CFR.
Pakistan: Pakistani buyers remained inactive due to the sluggish domestic steel market. Some steel mills were reportedly contemplating halting production due to an accumulation of steel stocks. Indicative offers for shredded scrap from the UK/Europe were evaluated at $420-425/t CFR Qasim.
Bangladesh: Market activities in Bangladesh also stagnated due to the slowdown in the domestic steel market following the elections, with no new projects reported yet. Additionally, delays in LC approvals for smaller mills contributed to the sluggishness. Indicative offers for shredded scrap from the UK/Europe were valued at $420-425/t CFR Chattogram, while HMS (80:20) stood at $400-405/t CFR.
Turkiye: Turkish imported deep-sea scrap prices held steady amid sluggish trade. While Turkish steelmakers were seeking May shipments, no new bookings were reported. Scrap recyclers awaited bids from Turkish buyers, with a potential small price drop anticipated. Turkish mills were cautious, monitoring post-Labour Day Asian market trends. Some anticipated a discount from US suppliers, who are currently targeting $385-390/t CFR Turkiye for HMS (80:20). European recyclers hesitated to lower prices. Observers noted a shift in mill mentality -- in favour of product sales before scrap purchases.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $422/t CFR Nhava Sheva, down by $4/t d-o-d.
Pakistan: UK-origin shredded indicatives were assessed at $423/t CFR Qasim, down by $2/t d-o-d.
Bangladesh: UK-origin shredded prices were assessed at $425/t CFR Chattogram, stable d-o-d.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $385/t CFR Turkiye, stable d-o-d.
