South Asia: Imported ferrous scrap market sees further downtrend d-o-d

• Weak steel demand weighs on South Asia, Turkiye
  
  
• Price uncertainty, logistics challenges plague Pak
  
  

The South Asian ferrous scrap market witnessed a drop today amid weak demand and ongoing market challenges. Overall, prices declined by $2-4/tonne (t) d-o-d.

In India, buyers remained cautious due to subdued domestic steel market sentiment, which limited scrap consumption. Pakistan experienced a further slowdown, as mills held off on purchases due to weak rebar demand and smog-related logistical disruptions. Bangladesh saw muted buying interest, as financial constraints, high inventories, and letter of credit (LC) issues hindered imports. Meanwhile, the Turkish market softened slightly, with lower offers from the Baltic and a general wait-and-watch approach by traders, as they expect potential price drops in the coming weeks.

Overview

Indian market sees muted scrap consumption: Indian buyers maintained a cautious stance today amid weak domestic steel market sentiments, which limited scrap consumption. Shredded offers from the US and UK/Europe were reported at $390-392/t CFR Nhava Sheva, with UK-origin shredded indicatives assessed at $391/t CFR Nhava Sheva, a decline of $4/t d-o-d. Meanwhile, HMS (80:20) from the UK/Europe stood at $365/t CFR, and West African material was at $370-375/t CFR. HMS 1 offers hovered at $375-380/t CFR, with origin becoming less relevant due to subdued demand.

Notably, some unverified rumours suggest a bulk booking of CR Busheling from Japan at $390/t CFR Chennai, but this remained unconfirmed.

A market source stated, "The market is sluggish, with buyers in a wait-and-watch mode. Chennai buyers, in particular, are out of the market, dealing with stock surpluses, poor sales, and the rainy season."

Another trader noted, "After continuous bookings recently, buyers have paused, with shredded bids slipping to $390/t. Turkish bookings at lower prices have further dampened sentiment, as Asian buyers hold out for better deals."

Pakistan remains wary amid weak rebar demand, smog: Pakistan's imported scrap market experienced a further slowdown today, with buyers cautious due to weak rebar demand and ongoing smog issues in Punjab disrupting logistics. Indicative offers for UK/Europe-origin shredded were heard at $390-395/t CFR Qasim, with BigMint's assessments finally pricing the material at $392/t CFR, a drop of $3/t d-o-d.

Mills held off on new purchases, expecting potential price drops, while domestic scrap offers also softened, reflecting broader market uncertainty. Sellers were reluctant to lock in deals amid the volatile environment.

Bangladeshi buyers hold off on purchases: Bangladesh's imported scrap market was sluggish today amid weak steel demand, high inventories, and financial constraints. Shredded offers from Australia and Malaysia stood at $395-400/t CFR, while UK-origin shredded prices were at $396/t CFR Chattogram, down $2/t d-o-d.

Buying interest was muted due to LC challenges, a depreciating currency, and high freights. Despite lacklustre sentiment, a few deals were reported from Hong Kong and Australia. Buyers are holding back, expecting further price reductions in the coming days.

Weaker euro weighs on prices in Turkiye: The Turkish imported scrap market softened slightly today, with Baltic-origin HMS (80:20) offers at $356-360/t CFR, signalling a failure to secure higher price targets. US-origin HMS (80:20) bulk prices stood at $356/t CFR Turkiye, down by $2/t d-o-d.

European recyclers attributed lower offers to a weaker euro, enabling more competitive pricing. A Turkish mill reported a recent deal for French-origin HMS (80:20) at $350/t CFR. Despite the downward pressure, traders expect a rebound as demand for January shipments picks up.

Prices assessments show d-o-d fall

India: UK-origin shredded indicatives inched down by $4/t d-o-d to $391/t CFR Nhava Sheva.

Pakistan: UK-origin shredded indicatives dropped by $3/t d-o-d to $392/t CFR Qasim.

Bangladesh: UK-origin shredded prices were at $396/t CFR Chattogram, down by $2/t d-o-d.

Turkiye: US-origin HMS (80:20) bulk prices stood at $356/t CFR Turkiye, down by $2/t d-o-d.