South Asia: Imported ferrous scrap market remains slow, Indian buyers absent

Today, the South Asian ferrous scrap market continued to witness sluggishness. Indian buyers were notably scarce in the seaborne market, opting for cheaper domestic alternatives. Similarly, purchases slowed in Pakistan and Bangladesh due to Ramadan.

In India, shredded scrap offers remained unchanged, while they increased marginally by $1/t in Pakistan and $2/t in Bangladesh. Bulk offers for US HMS (80:20) to Turkiye saw a slight decrease of $1/t d-o-d.

Overview

The Indian imported scrap market stayed quiet due to minimal buying interest, with domestic scrap prices more favourable to buyers. Market activities slowed due to pre-election code of conduct and the upcoming Holi festival. Indicative offers for shredded scrap hovered around $400-410/t CFR from the US and Europe, while buyers aimed for prices below $400/t CFR. Offers for HMS (80:20) from Europe and West Africa ranged from $370-377/t CFR. Latin American and Kuwaiti origin HMS scraps were offered at $390-395/t CFR.

The ferrous scrap market in Pakistan and Bangladesh slowed due to Ramadan and ongoing festivities. In Pakistan, offers for shredded scrap saw a slight increase to $410-415/t CFR, but buyers aimed to secure deals below $410/t. In Bangladesh, offers ranged from $405-410/t CFR Chattogram for shredded scrap and $395-400/t CFR for HMS (80:20). Bangladeshi buyers were particularly interested in bulk deals, especially from the USA and Australia, rather than container shipments.

Turkish imported ferrous scrap prices held steady with mills suggesting potential drops while recyclers maintained firm offers. Turkish imported offers for HMS (80:20) stood at $378/t CFR, slightly down from the previous day. An Izmir mill secured a US-origin deal for HMS (80:20) at $378.50/t CFR, with bonus scrap at $398.50/t CFR for May shipment. Tradable value indications for US/Baltic-origin HMS (80:20) ranged between $377-$385/t CFR. Turkish mills anticipated lower prices, eyeing a target of $370/t CFR for US-origin material. Offers for US-origin HMS (80:20) stood at $385/t CFR.

Price assessments

India: UK-origin shredded scrap indicatives were assessed stable at $405/t CFR Nhava Sheva.

Pakistan: UK-origin shredded scrap indicatives edged up by $1/t d-o-d to $411/t CFR Qasim.

Bangladesh: UK-origin shredded scrap prices were assessed at $407/t CFR Chattogram, up by $2/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $378/t CFR Turkiye, down by $1/t.

Outlook

Imported ferrous scrap offers in South Asian markets are anticipated to experience pressure this month due to the absence of Indian buyers, especially for shredded scrap. Ramadan and Eid in Pakistan and Bangladesh may result in limited activities in the region. While Turkish mills foresee a downward trend in offers, seller steadfastness suggests a wait-and-watch approach in the near term.