South Asia: Imported ferrous scrap market sees downtrend - 11 July

The South Asian ferrous scrap market witnessed a downtrend due to a lack of buying interest across various markets. Indian buyers remained on the sidelines, driven by a continuous fall in the domestic steel market and a persistent bid-offer disparity. Pakistani buyers displayed slight interest, procuring scrap on an as-needed basis. Meanwhile, Bangladeshi buyers adopted a wait-and-see approach, influenced by higher offers and an anticipation of price drops.

Overview

India: In India, demand for imported scrap remained weak due to a continual drop in domestic steel demand and prices, leading to lower scrap intake and a persistent disparity between bids and offers.

A trader from southern India noted, "TMT sales are slow, but there are billet inquiries in the southern market. We're getting required materials domestically, so imported inquiries are slow due to fluctuating supplier offers. The monsoon will impact market activity over the next month. Some mills will enter the market if their scrap inventory drops, possibly this month, looking for Australian and African materials."

Indicative offers for shredded scrap from the US and UK/Europe were at $410-415/t CFR Nhava Sheva, while bids were around $400-405/t CFR. HMS (80:20) offers from West Africa and UK/Europe were $385-395/t, with buyers aiming for $375-380/t CFR.

Pakistan: Pakistani buyers showed interest in seaborne scrap, but the pace remained slow due to the sluggish domestic steel market. Indicative offers for shredded scrap from the UK/Europe were assessed at $425-430/t CFR Qasim, with a few deals in the last 2-3 days concluded at $422-425/t CFR.

A steel mill official stated, "There were corrections in domestic scrap and rebar prices. The current market rate was PKR 258,000-260,000, but mills kept their official rate higher by PKR 5,000/t. Production costs were not under control for normal or mid-cap steel producers. Inquiries from the UK were heard at $425/t, and deals were made at $420-422/t, but it was buyer-specific. Some buyers also showed better interest in the UAE materials, preferring PNS and HMS mix grades."

Bangladesh: The Bangladeshi imported scrap market was very slow today, as buyers adopted a wait-and-see approach due to higher offers and anticipation of a price drop. Additionally, a gas shortage has led to many rolling mills shutting down or reducing production. Although there was a high preference for materials from Australia, Singapore, and Malaysia, the increase in freight rates prevented the booking of significant volumes. Offers for Australian-origin shredded scrap were heard at $425-430/t CFR Chattogram, while HMS (80:20) was at $410/t CFR.

Turkiye: The Turkish imported ferrous scrap market softened slightly following a recent US-origin deal and the decline in Chinese iron ore prices. However, suppliers remained firm, resulting in range-bound offers from the US at $388-390/t CFR Turkiye. HMS collection costs were assessed at Euro 325/t delivered to docks, though recyclers are anticipating a correction. However, a trader noted that it is difficult to get scraps at Euro 315/t.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $413/t CFR Nhava Sheva, down by $1/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed at $425/t CFR Qasim, down by $1/t d-o-d.

Bangladesh: UK-origin shredded prices were assessed flat at $424/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $390/t CFR Turkiye, unchanged.