South Asia: Imported ferrous scrap market remains slow amid higher offers in India, Pakistan

The South Asian ferrous scrap market witnessed a slow trend from the starting days of the week. The demand for imported scrap across markets remained subdued due to a noticeable gap between bids and offers. A lack of buying interest was prevalent as buyers anticipated further declines in offers and grappled with prolonged LC (Letter of Credit) issues.

In India, shredded scrap offers increased by $3/t. However, in Turkiye and Bangladesh prices edged down by $1/t and $2/t, respectively. Meanwhile, in Pakistan, offers remained stable against yesterday.

Market overview

India: Today in India, the imported ferrous scrap market remained notably subdued. Buyers are cautiously awaiting price reductions, yet sellers, constrained by limited availability, are unable to reduce their asking prices. Consequently, a notable disparity existed between bidding and asking prices. Offers for shredded scrap from Europe were assessed at $418-420/t CFR Nhava Sheva, but, buyers were targeting at $405-410/t CFR.

HMS (80:20) scrap originating from Europe was assessed at $400-405/t CFR Nhava Sheva. Similarly, West African HMS (80:20) scrap was evaluated at $398-400/t for both Nhava Sheva and Chennai. While there were reports of HMS offers from Australia reaching $410-415/t, while workable prices according to buyers stood at $400-405/t.

Pakistan: The imported ferrous scrap market in Pakistan was observed to be dull today. Offers for shredded scrap from Europe were heard at $410-415/t CFR Qasim, however, no deals were reported at this level.

In the domestic market, major mills reduced rebar offers by up to PKR 10,000-12,000/t. The effective price stood at PKR 268,000-270,000/t for 16 to 32 mm sizes, while PKR 270,000-272,000/t for 10 to 12 mm. However, in the trade market, workable levels for rebar were heard at PKR 265,000-268,000/t. Billets were heard at PKR 220,000-225,000/t and local scrap was assessed at PKR 150,000/t on a cash basis.

Bangladesh: The imported ferrous scrap market in Bangladesh remained lackluster today amidst the ongoing LC issues. Offers for shredded scrap from Europe have been assessed at $425/t CFR Chattogram, while HMS scrap stood at $405-408/t CFR.

Offers for bulk HMS and H2 scraps from the US and Japan remained stable. Meanwhile, PNS scraps were heard at $440/t from Europe, but buyers were hesitant to engage in new trades due to concerns about weaker buying parity.

Turkiye: The Turkish imported ferrous scrap market has adopted a watch-and-wait approach due to the escalating Israel-Palestine conflict, offers dropped by $3-4/t and currently hovering around $366-368/t. European workable value indications have decreased, and US resistance has contributed to the drop in Turkish deep-sea import ferrous scrap prices. As military clashes intensified over the weekend, uncertainty grew regarding Turkish rebar exports to Israel, leaving many market participants uncertain about the near-term impact on the Turkish steel markets.

Tradable value indications ranged from $565 to $570/t FOB, with offers heard at $575 to $590/t FOB, despite a persistent lack of sales.

Recent deals

• Around 250 t of HMS (80:20) from Cyprus origin were booked at $420/t CFR Mundra
  
  
• Approximately 250 t of Chile-origin HMS (80:20) were procured at $405/t CFR Mundra
  
  
• A parcel of 500-t Australian origin HMS (80:20) scrap was secured at $405 CFR west coast India
  
  
• Around 500 t of CR busheling scrap from Germany were sourced at $435/t CFR Mundra
  
  
• About 1,000 t of busheling scrap from Germany were booked at $435/t CFR west coast India
  
  

Price assessments

India: UK-origin shredded scrap offers were at $417/t CFR Nhava Sheva, up by $3/t d-o-d.

Pakistan: UK-origin shredded scrap offers were stable d-o-d at $415/t CFR Qasim.

Bangladesh: Offers for UK-origin shredded scrap were at $428/t CFR Chattogram, down by $2/t d-o-d

Turkiye: US-origin HMS 1&2 (80:20) prices were down by $1/t to $368/t CFR Turkiye

Outlook

Given the current circumstances, it is probable that imported ferrous scrap offers will continue to exhibit volatility. Especially in Bangladesh, the market might remain under stress as prevailing LC problems might reduce buying frequency.