South Asia: Imported ferrous scrap market remains largely stable d-o-d

The South Asian ferrous scrap market remained largely stable d-o-d, with Indian buyers showing limited interest amidst political uncertainty and bid-offer disparities. In Pakistan, the market experienced a slight uptick as buyers prepared for the Eid holidays, while in Bangladesh, buying trends were mixed, influenced by global trade flows and freight costs.

Overview

India: In India, demand for imported scrap remained sluggish as buyers awaited the formation of the government following the recent elections. Additionally, bid-offer disparities have resulted in limited trade volumes. Shredded scrap offers from the UK/Europe were assessed at $415-420/t CFR Nhava Sheva, with some suppliers quoting $430/t, while buyers' expectations were lower at $415-418/t CFR.

Offers for HMS (80:20) scrap from West Africa and Europe were assessed at $395-400/t CFR.

A steel mill official commented, "The local market is slow, and nobody is making offers as prices are falling. Although imported offers were available, we didn't buy anything due to the bid-offer disparity."

Pakistan: A slight improvement was observed in the Pakistan market as buyers began inquiring about imported scrap to restock ahead of the Eid holidays. Indicative offers for shredded scrap from the UK/Europe were assessed at $420-425/t CFR Qasim.

A steel mill official commented, "The market seems slightly active as mills need some materials for the next production cycle before the mid-June slump during the holiday."

Bangladesh: In Bangladesh, buyers are exhibiting mixed trends. Some are looking to restock ahead of Eid, while others are adopting a wait-and-watch approach to determine optimal price levels, considering current global trade flows, freight costs, and container availability. Indicative offers for shredded scrap from the UK/Europe were assessed at $425-430/t CFR Chattogram, while HMS (80:20) offers were heard at $405-410/t CFR.

Turkiye: A bulk scrap cargo from the Baltic region containing HMS (80:20) and bonus scraps, booked by a mill in the Aegean region at $382/t and $402/t, respectively, on a CFR Turkiye basis. European HMS (80:20) scrap prices are higher than US prices due to increased collection costs, limited availability, and a stronger Euro. EU export prices are expected to rise, while US-origin HMS (90:10) was offered at $390/t CFR, with US recyclers holding firm. In response to rising scrap prices, Turkish mills have raised rebar offers to $580-590/t FOB.

Price assessments

India: UK-origin shredded scrap indicatives were assessed unchanged d-o-d at $418/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives were assessed at $422/t CFR Qasim, unchanged d-o-d.

Bangladesh: UK-origin shredded prices edged up by $2/t to $425/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $383/t CFR Turkiye, up by $3/t d-o-d.