South Asia: Imported ferrous scrap market sees limited buying amid higher offers

Today, the South Asian ferrous scrap market exhibited a slow pace, with limited buying activity for imported materials. Indian scrap buyers chose to adopt a cautious wait-and-watch strategy, while Pakistani buyers had made some bookings towards the end of the previous week, leading them to closely monitor the market on the first day of this week. Bangladeshi buyers, on the other hand, had remained relatively inactive for some time. Nevertheless, import offers saw a slight increase due to improved booking activity in the previous week.

Market Overview

India: In India, demand for imported ferrous scrap was weak today as buyers have adopted a wait-and-watch strategy in anticipation of a slight correction in offers. Indicative offers for containerised shredded scrap were being heard at around $440/t CFR Nhava Sheva. Meanwhile, HMS (80:20) scrap was available at $420/t CFR Nhava Sheva.

Offers for HMS (80:20) on CFR Chennai basis, were heard to be at around $418-420/t. From the UK, offers for HMS (80:20) were coming in at around $422-425/t, while buyers bid at around $410-415/t CFR Nhava Sheva.

Market observers suggest that in eastern India, the availability of alternative raw materials like pig iron are expected to increase due to higher production from major mills. Consequently, the demand for scrap in this region is likely to remain subdued for a certain period.

Pakistan: Today, the imported ferrous scrap market in Pakistan experienced a slow pace, primarily due to reduced demand from the domestic finished steel sector. It is worth noting that towards the end of the previous week, some steel mills in the region had secured shipments of shredded scrap from Europe and the UK. Currently, offers for shredded scrap are circulating at approximately $445/t CFR Qasim.

In the domestic market, a prominent steel producer increased rebar (grade 60) prices by PKR 5,000/t ($16/t) to PKR 292,000/t ($953/t) for 10-12 mm and PKR 290,000/t ($947/t) for 16mm and above. However, in the trade market offers were around PKR 285,000-286,000/t ($930-934/t).

"The significant rise in steel rebar prices had a detrimental effect on construction expenses, leading to the suspension of many projects in Pakistan," a reliable source shared while speaking to SteelMint.

Bangladesh: The market for imported ferrous scrap in Bangladesh remained quiet, with no definite offers or bids reported today. Indicative offers for UK-origin shredded scrap hovered at around $450/t CFR Chattogram, while HMS (80:20) scrap from the UK was quoted at $430/t CFR Chattogram.

Turkiye: Trading activity in Turkiye's imported scrap market was quiet today. Steelmakers took their time to assess the situation, and discussions in the ferrous scrap sector were scarce today because Turkish mills were not majorly inquiring about buying. Scrap collectors were hesitant to establish firm offers, as they awaited improved demand from other sources. It is unlikely that Turkish importers will show renewed interest in buying until next week. Offers for US-origin bulk HMS (80:20) scrap continue to hover at $374/t CFR.

Recent deals

• Around 1,500 t of European shredded scrap were booked at $438/t CFR Qasim
  
  
• Approximately 2,000 t of European shredded scrap were booked at $440/t CFR Qasim
  
  
• A deal involving 500 t of HMS (90:10) was booked at $430/t CFR Mundra from Latin America
  
  

Price assessments

India: UK-origin shredded scrap offers were at $438/t CFR Nhava Sheva, up $3/t against the last assessed offers on Friday.

Pakistan: UK-origin shredded scrap offers were at $442/t CFR Qasim, up by $4/t since last closing.

Bangladesh: Offers for UK-origin shredded were at $450/t CFR Chattogram, up by $2/t from the last offers.

Turkiye: US-origin HMS 1&2 (80:20) prices were stable at $374/t CFR Turkiye.

Outlook

In the Indian context, offers are not likely to rise in the near term as buyers have already shown reluctance. However, if sellers maintain a strong stance, negotiations might be seen. Meanwhile, in Pakistan and Bangladesh offers are likely to remain range-bound due to inconsistency in the domestic finished steel markets.