South Asia: Imported ferrous scrap market remains sluggish

The South Asian ferrous scrap market continued its sluggish trend with major markets like India and Bangladesh showing unchanged offers and slow buying activities in Pakistan. Turkiye, the global price setter and market indicator, also saw sluggish market activity.

India

In India, a couple of deals were heard in the shredded grade, with prices ranging from $440 to $445/t for the day. Other offers from market participants remained unchanged.

In southern India, the market witnessed modest trade activity and local steel mills offered discounted prices to traders for finished steel. Overall, the market was dull compared to the previous day. However, the northern market showed some improvement in buying activities compared to the last trading session.

Pakistan

In Pakistan, shredded grade offers from Europe varied between $438-445/t due to slow buying and limited inquiries. Some players expect more active deals as letter of credit (LC) openings pick up gradually. However, only nominal bookings are anticipated.

Bangladesh

Imported scrap prices in Bangladesh remained unchanged due to limited inquiries from buyers. Major buyers refrained from engaging in trade due to bearish demand for finished steel in the domestic market.

However, industry participants are hopeful that the upcoming announcement of the general budget for the financial year 2023-24 (FY24) in June may give clearer market directions. They anticipate that government projects will improve domestic steel demand.

Turkiye

In Turkey, imported ferrous scrap prices remained unchanged amid thin trading activity leading up to the second round of the presidential election.

SteelMint's daily assessment for US-origin HMS 1&2 (80:20) stood at $375/t CFR Turkiye, showing no change from the last offer.

Recent deals

A recent booking of around 1,000 t of shredded scrap from Europe was made at $440/t CNF Mundra.

Another 1,000 t of shredded scrap from Europe was booked at $445/t CNF Mundra.

Price assessments

• Europe-origin shredded scrap offers into India remained steady d-o-d at $440/t CFR Nhava Sheva.
  
  
• UK-origin shredded scrap prices into Bangladesh stood at $460/t CFR Chattogram, unchanged d-o-d.
  
  
• UK-origin shredded scrap prices into Pakistan stood at $443/t CFR Qasim, largely stable d-o-d.