South Asia: Imported ferrous scrap market largely stable; Pakistan, Bangladesh absent due to Eid
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The South Asia ferrous scrap market stayed mostly stable d-o-d. Indian buyers exhibited little interest in procuring imported scrap due to bid-offer discrepancies and weak downstream demand. Meanwhile, buyers in Pakistan and Bangladesh have embraced a holiday mood due to the Eid festival, resulting in no firm offers or bids being reported.
Market overview
India: Imported scrap demand in India has decelerated due to bid-offer discrepancies and a slowdown in the domestic steel market, dampening buyer interest. Furthermore, an approaching winter is likely to continue impacting scrap demand in the near future.
Indicatively, shredded scrap offers from the UK/Europe, the US, and Australia are priced between $415-420/t CFR, while HMS (80:20) offers from the UK/Europe and West Africa hover at around $395-400/t CFR.
Pakistan and Bangladesh: Ahead of Eid, Pakistani and Bangladeshi buyers have chosen to remain on the sidelines, focusing instead on Eid celebrations. Concurrently, many steel mills, particularly in Pakistan, have scheduled maintenance shutdowns during the off-season.
Indicative offers for shredded scrap from the UK/Europe were assessed at $425/t CFR Qasim and $425-430/t CFR Chattogram. HMS (80:20) offers were quoted at $405-410/t CFR Chattogram.
Turkiye: Turkish imported ferrous scrap prices from US suppliers increased by $2/t. A US-origin bulk scrap cargo with HMS (80:20) and bonus was booked by a West Marmara-based mill at $386/t and $406/t CFR Turkiye. Additionally, a UK-origin bulk scrap cargo with HMS (80:20) was booked by a Mediterranean region-based buyer at $381/t CFR.
Steel mills still need scrap for melting, regardless of weaker rebar demand, and suppliers cannot lower scrap prices due to high collection costs. Egypt's demand for scrap is better, with more than 10 cargoes per month which might push up fresh scrap prices to $390/t CFR.
Price assessments
India: UK-origin shredded scrap indicatives were assessed at $420/t CFR Nhava Sheva, unchanged d-o-d.
Pakistan: UK-origin shredded indicatives were assessed at $425/t CFR Qasim, up by $2/t d-o-d.
Bangladesh: UK-origin shredded prices edged down by $1/t to $425/t CFR Chattogram.
Turkiye: US-origin HMS (80:20) bulk prices were assessed at $385/t CFR Turkiye, up by $1/t d-o-d.
