South Asia: Imported ferrous scrap market sees downtrend on limited buying interest

The South Asian ferrous scrap market experienced a downtrend today, with limited activity across India, Pakistan, and Bangladesh. Indian buyers remained cautious, showing no urgency in procuring imported scrap due to sluggish finished steel sales and expectations of lower offers. In Pakistan, market sluggishness persisted as operations had not fully resumed post-Eid, compounded by the pending budget bill. Bangladesh saw constrained market activities owing to the monsoon season and challenges in opening letters of credit (LCs). Meanwhile, Turkish deepsea scrap prices remained flat, with mills focusing on rebar sales and showing reluctance to pay higher prices for scrap.

Overview

India: Indian buyers continued to stay on the sidelines, showing no urgency in procuring imported scrap due to sluggish finished steel sales and the expectation of lower offers. The decline in domestic scrap and sponge prices has shifted preferences towards these alternatives instead of imported scrap. Shredded scrap offers from the US and UK/Europe were reported at approximately $412-416/t CFR Nhava Sheva, while HMS 80:20 offers from West Africa and the UK/Europe were assessed at $385-395/t CFR.

Pakistan: The Pakistani market remained sluggish as buyers have not fully resumed operations following the weeklong Eid holidays. Additionally, some steel mills have yet to restart production, and those that have are operating at only 40-50% capacity due to weak buying inquiries. The pending budget bill has further added to the uncertainty. As a result, offers for shredded scrap have softened, with prices assessed at $420-423/t CFR Qasim from the UK/Europe and $418-420/t CFR from the US.

A steel mill official commented, "We've resumed production but only at 50%. The market is still slow, and the budget bill's pending release creates a lack of clarity. Finished steel sales are sluggish, with industry production levels at 30-40%, and some mills have yet to start production."

Bangladesh: In Bangladesh, market activities remained limited due to the monsoon season and challenges in opening LCs. Additionally, some participants were still away in holiday mode post-Eid. Indicative offers for shredded scrap from the UK/Europe were assessed at $420-425/t CFR Chattogram, while HMS (80:20) was at $400-405/t CFR.

Turkiye: Turkish imported ferrous scrap prices remained flat as market activity was muted. Mills focused on rebar sales before deciding on scrap purchases, showing reluctance to pay $380/t CFR or $390/t CFR for HMS (80:20). Some price increases are possible for July shipments due to time pressure, but resistance is expected for August. Turkish mills aim for $382-383/t CFR, while recyclers target $390/t or higher due to high freight costs and lower collection volumes.

Price assessments

India: UK-origin shredded scrap indicatives were assessed at $416/t CFR Nhava Sheva, down by $1/t d-o-d.

Pakistan: UK-origin shredded indicatives were assessed at $423/t CFR Qasim, down by $2/t d-o-d.

Bangladesh: UK-origin shredded prices dropped by $1/t to $424/t CFR Chattogram.

Turkiye: US-origin HMS (80:20) bulk prices were assessed at $386/t CFR Turkiye, unchanged d-o-d.