South Asia: Imported ferrous scrap market remains slow, few deals reported

The ferrous scrap market in South Asia experienced a slowdown today, with only a few deals reported in India, albeit at reduced levels. In Pakistan and Bangladesh, market sentiments have been subdued due to weak domestic demand and external challenges.

Offers for shredded scrap remained unchanged d-o-d across these markets.

Market overview

India: The demand for imported ferrous scrap in India is currently sluggish, with only a limited number of deals being reported. It is noteworthy that these deals have been settled at lower price levels, as suppliers are actively reducing their inventories.

Offers for shredded scrap from Europe were heard at $410-415/t CFR Nhava Sheva, while HMS (80:20) were at $395-400/t CFR. NTP scrap were available at $435-440/t CFR Chennai.

A southern India-based mill said: "We procured ample stocks earlier. Thus, we will return by the end of October."

Another steel mill located in southern India said: "Domestic sales had been poor, especially in the south, which could potentially impact the import market in the next couple of days."

Pakistan: The demand for imported ferrous scrap in Pakistan has experienced a recent slowdown. Some buyers have encountered difficulties in opening letters of credit, and sales of domestic finished steel have also been sluggish, leading to a subdued overall market sentiment in the country.

Shredded scraps were offered at $412-415/t CFR Qasim from Europe. However, no deals were heard at this level.

Bangladesh: The demand for imported ferrous scrap is currently at a low point. However, buyers are facing challenges in opening letters of credit (LCs) and are eagerly awaiting intervention from the central bank to address and improve the situation.

Offers for shredded scrap from Europe have been assessed at $430-435/t CFR Chattogram. Meanwhile, Australian-origin HMS scrap has been offered at $420-422/t CFR.

Turkiye: Turkish deep-sea imported scrap prices have remained stable, and there is some interest from mills to import ferrous scrap for shipments in November, targeting a price of $365/t CFR as per sources. However, the indicative trade values for US-origin HMS (80:20) were reported at a minimum of $370/t CFR. On the other hand, Baltic-origin HMS (80:20) had slightly lower indicative workable values ranging from $367 to $368/t CFR.

Although a few deals were done this week, negotiations are progressing slowly due to limited demand for finished steel products. Most producers are taking their time in booking scrap, given the current constraints in rebar sales.

Recent deals

• Around 500 t of turning boring scraps were booked from the US at $365/t CFR Nhava Sheva.
  
  
• A volume of 500 t of shredded scrap from Europe was procured at $415/t CFR Nhava Sheva.
  
  
• About 1,000 t of shredded scraps were booked from Europe at $405/t CFR west-coast India.
  
  
• A parcel of 500 t of UK-origin LMS scrap was booked at $380/t CFR Chennai.
  
  
• Around 500 t of CR bundle scraps were booked from a Turkish yard at $448/t CFR west-coast India.
  
  

Price assessments

India: UK-origin shredded scrap offers were stable at $410/t CFR Nhava Sheva, d-o-d.

Pakistan: UK-origin shredded scrap offers were unchanged at $414/t CFR Qasim, d-o-d.

Bangladesh: Offers for UK-origin shredded scrap were stable at $430/t CFR Chattogram.

Turkiye: US-origin HMS 1&2 (80:20) prices were unchanged d-o-d at $370/t CFR Turkiye.

Outlook: The market outlook remains uncertain, with some expectations of reduced scrap prices in Pakistan and Bangladesh due to LC-related challenges and foreign exchange reserve problems. However, the overall direction of the market will depend on how Turkish buyers will look into the market after observing the volatility in recent price trends and will influence other markets like India.